Uganda follows Kenya's lead in banning importation of older second-hand cars

Among other proposed tax measure for Non Tax Revenue for the financial year 2018/2019 that the tax agency will be implementing include the increase on motor vehicles first registration fees.

The ‘pearl of Africa’ will by September this year block the importation of used vehicles older than 15 years and above from the year  of their Manufacture.

Uganda revenue Authority Commissioner for Customs, Dicksons Kateshumbwa said by September, they will not allow such vehicles to be imported into the country for environmental related reasons.

“If you are still planning on importing a used car that is 15 years, you have up to September, after which you will not be able. This is aimed at protecting our environment,” He said at the Uganda Revenue Authority’s post Budget meeting at Hotel Africana.

Kateshumbwa said after September,  URA  will  commence on  the  implementation of the new proposed  Tax  measure  for  Non Tax Revenue  for the Financial year 2018/2019.

Among other proposed tax measure for Non Tax Revenue for the financial year 2018/2019 that the tax agency will be implementing  include the increase on motor vehicles  first registration fees which has been pushed from UGX1.Million to UGX1.3 Million shillings.

In 2017, the Kenyan government banned the importation of second hand vehicles older than seven years.

The ban forced Kenyans of less means but keen to own a car to cross the border to buy cheaper and older second-hand cars from Kampala, while Kampala’s ban is still more than double Kenya’s ban it signals the start of restricting and controlling age of cars on African roads and in a few years the whole region may have a uniform ban of second-hand cars age.

The ban is most likely going to affect a great number of Ugandans because majority of them cannot afford to buy brand new cars.

It is also feared that the ban will lead to loss of jobs since the motor industry employs many Ugandans especially the youth who are the majority second hand car dealers in the country.

In the financial year 2018/2019, government is looking at mobilizing about Shs 16,358.8 Billion from Domestic Revenue Mobilization of which Shs 15,938.8 Billion will be collected by URA as tax revenue and Shs 420 Billion as Non Tax Revenue.

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