Last June, Finance Minister Hon Matia Kasaija while reading the 2018/2019 annual budget said the government had decided to ban cars which were older by over 15 years.
Today, URA which is the tax collection revenue body has started off the phase of implementing the directive.
Car import companies had petitioned government asking that they be given more time to clear their stocks, while resellers said they would lose business since Ugandans could not afford newer cars.
URA through Dickson Kateshumbwa who is the commissioner in charge of customs has now given a directive on how the implementation will be followed.
Cars that were already in transit and their importation declared will be allowed on condition that they are paid for in 3 months.
Also, motor vehicles already in bonded warehouses and older than the stipulated manufacture date will be registered and allowed.
“We have been in talks with government hoping that they can allot more time for us. The directive is a good move but it is being hurriedly implemented which will affect business and car imports for our people” said Hasnain Virk of Syan Motors in Kampala who is also the Secretary General of the Car Importers Association.
Already, used cars were paying an environment surcharge, while government had given incentives to brand new car importers in form of reduced taxes.
With most Ugandans driving older cars that are bought at ‘give-away’ price in Japan, the worry is there will be price increases in new model cars affecting new purchases.
In Kenya and Rwanda, the ban of cars older than 15 years from the date of manufacture was implemented years ago, while the East Africa Community is calling for a harmonised car import system that should see Burundi, Tanzania and South Sudan follow suit
