Motor vehicle sellers who still have stock of old vehicles have been directed to sell them off by September 2018 or risk making losses.
The Directive was issued by Uganda Revenue Authority (URA) during the a briefing of taxpayers at a breakfast meeting in Kampala on the new tax measures to enable them make informed decisions on where to invest or trade.
Dickson Kateshumbwa, the Commissioner for Customs explained to hundreds of people that showed up for the meeting at Hotel Africana, that this directive follows the enactment of the Traffic and Road Safety (Amendment) Act 2018, which banned the importation of vehicles older than 15-years.
The Commissioner for Customs also noted that come October 1st 2018, all passenger vehicles and goods vehicles, that are older than eight years and below 15-years, will pay a levy equivalent to 50 per cent of the value of the vehicle, meaning that only vehicles manufactured after 2010 can be allowed in the country without paying the levy.
The above mentioned ban which extended the age of cars exempted from the environmental levy to eight years from the original five years, comes into force on July 1, 2018, but motor vehicles which are in transit before the commencement of the Act and which arrive in Uganda by September 30, 2018, will be accepted.
Commissioner Kateshumbwa further advised vehicle dealers to ensure that they clear all vehicles older than 15 years to avoid incurring losses as the exception will only be given to long haulage trucks, which include agricultural or forestry tractors; earth moving motor vehicles, compressing machines and road rollers.
Government says the objective of stopping the importation of older vehicles is to protect the environment and the public against the dangers resulting from air pollution and reduce road accidents which are usually blamed on vehicles in Dangerous Mechanical Conditions.
Uganda Revenue Authority (URA) says that close to 80 percent of the motor vehicles imported in Uganda are older than 10 years.