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Monday, April 30, 2018 

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

car dealers in the meeting


 

KAMPALA, Uganda--Importers of used cars have warned that Uganda 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 2020.

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.


 

By SAMUEL NABWIISO, Monday, April 30th, 2018