Government ban on importation of old vehicles starts

The ban by government on the importation of vehicles that are older than 15 years from the date of their manufacture has taken effect, the Nile Post has learnt.

Parliament in May passed the Traffic and Road Safety (Amendment) Bill, 2018 that among others effected a ban on the importation of vehicles that are 15 years old or more from their date of manufacture.

Earlier, government had proposed the ban to affect vehicles which are eight years from the date of manufacture but after a recommendation by the parliamentary committee on Finance, they settled for 15 years.

In a communication by the Uganda Revenue Authority Commissioner in charge of customs Dickson Kateshumbwa to the Used Car Dealers Association, the new amendment and ban on old vehicles tool effect on Monday, October 1 2018.

“No motor vehicle age 15 years and above shall be allowed into Uganda effective October 1, 2018 .This includes motor vehicles that will be cleared through the port of Mombasa or Dar Es Salam save for those where a customs declaration will have been made and released by September 30, 2018,”reads in part the communication by Kateshumbwa.

However, according to the communication, vehicles aged 15 years and above but were already in Uganda or any East African country by September 30 will be allowed up to a period of three months to pay taxes and be registered.

The revenue collecting body also says that duty paid vehicles that are still within warehouses will be relocated to designated places within the warehouses pending registration and clearance.

“Customs will auction any motor vehicles whose warehousing will have expired.”

The Works and Transport Minister, Eng.Monica Ntege Azuba recently defended the move to ban the importation of vehicles as meant to save the environment as well as being on the same standards with other countries in the region.

Exempted

Vehicles meant for transport of goods with a gross weight of at least six tonnes and special purpose vehicles have been excluded from the new arrangement.

Special purpose vehicles exempted include breakdown lorries, crane lorries, fire fighting vehicles, spraying vehicles, mobile workshops, forklifts, mobile drilling rigs, works trucks, tanks, armoured fighting vehicles, cesspool emptiers, water bowsers, bullion spreaders, bucket trucks, aircraft refuellers, and mobile banks.

Others exempted are agricultural or forestry tractors, earth moving vehicles, road rollers, tamping machines and vehicles in transit before the commencement of the act and are set to arrive in the country by September 30th.

Registration fees increase

As part of the Traffic and Road Safety Act 1998(amended in 2018) registration fees for a number of vehicles entering the country were also increased.

According to the amendments, sedans, saloons and estate cars apart from dual purpose goods passenger vehicles are now required to pay shs 1.5 million as registration fees whereas this amount will be the same for passenger vehicles including omnibuses with a seating capacity not exceeding 28 passengers.

Estate and station wagon vehicles with engine capacities of 3500cc and above are expected to part with shs1.7 million for their registration.

Environmental fee

Government also introduced an environmental fee on vehicles which are five years old but do not exceed eight years from the date of manufacture excluding goods vehicles and this is expected to be 35 percent of the price quoted by a seller including all other charges as deemed by the seller.

A 50 percent fee will be charged on vehicles which are more than eight years old or more from the date of manufacture whereas vehicles that are five years or more old but are designed to carry goods will pay 20 percent of the price quoted by the seller as an environmental fee.