Uganda Revenue Authority has loosened its position and reviewed restrictions it had imposed on warehousing and importation of used cars in Uganda.
The taxes authority had made a directive to start a 9 years old or more warehousing regime on used vehicles and has adopted a one-year reduction approach on warehousing regime for these motor vehicles.
The new measure was meant to effect from 1st July 2022, motor vehicles older than 13 years shall pay taxes at the first ports of entry into the East African Community.
URA Commissioner General, John Rujoki Musinguzi, says the move to review the warehousing restrictions on older motor vehicles has been occasioned by the current global inflation and economic trends.
On 5th May 2022, the old car importers, under their association ‘Used Car Dealer Association Uganda’, expressed their dissatisfaction with the directive. The dealers were concerned about the directive impact on the re-exported business.
Dealers noted that about 5,000 vehicles are exported to South Sudan, the Democratic Republic of Congo, and Burundi. About 83% of the re-exported motor vehicles fall in the 9 to 15 years category, adopting the URA directive about Ugs120 billion business faces threats since the re-exported vehicles would have to be cleared at the port. Said Marvin Ayebale, the association’s PR.
The Uganda Taxes masters have reviewed their directive and decided to loosen the restrictions on the warehouse period of motor vehicles from 9 to 12 years.
So, now with the new relaxed rules on the warehousing regime, the motor used vehicles of 13 years and above shall pay taxes at the first ports upon entry into the East African Community.
