Government to loose revenue/jobs over new law on used vehicles


KAMPALA, Uganda–Importers of used cars have warned thatUganda revenue Authority is at Risk of losing revenue over the proposed law
stopping importation of cars eight years and above from date of its manufacture.

They have also warned that many Ugandans who are employed in
the sector are at risk of losing jobs and have urged legislators to reject the
proposal. Currently Uganda imports over two thousand used cars annually and paying
billions of shillings in taxes to URA.

Speaking in  meeting
attended by second hand car importers  in
Kampala , Ayebale Marvin, the Secretary General of the association of  motor dealers in Uganda   said any 
proposal to this effect should be done in phases so as to allow Ugandans
adjust accordingly as they wait for the manufacture of news cars in Uganda by

He added that at the moment, many Ugandans cannot afford new
cars because they are expensive.

“We are not against the government proposal of banning the
importation of second hand cars but more time should be given to dealers since
some have made orders for the vehicles from Japan and other countries. If government
implements the proposal, car dealers will be affected “He explained.

Government under the new Traffic and Road Safety Act 1998
(Amendment) Bill 2018 tabled  before
parliament  proposes that a person who
imports a motor vehicle which is five years old or more from the date of its manufacture,
shall pay an environmental levy on that vehicle.

The environmental levy shall be collected by the Uganda
Revenue Authority before clearance of the vehicle.

However under the same proposal some vehicles of special
usage are exempted from the ban and they are broken-down as Lorries, crane Lorries,
fire fighting vehicles, concrete mixer lorries, road sweeper lorries, spraying
lorries, mobile workshops, forklifts, mobile drilling rigs and mobile
radiological units.

Relatedly, Motor vehicles which are in transit before the
commencement of this Act and those that arrive in Uganda by September 30, 2018
will as well be exempted from the ban.

The estimated average transaction price of a new car is
about UShs 65million compared to the used ones that cost between UShs10 million
and UShs20 million.

The contentious Bill signed by Works and Transport minister
Monica Azuba Ntege also proposes revisions on car registration fees and the
environmental levy imposed on imported cars. 

The new Bill, according to sources, was passed by Cabinet
and the Prime Minister, Dr Ruhakana Rugunda, tasked Ms Azuba to present it for
first reading in the house.