Second hand car dealers in Uganda have 3 months to clear stock

Uganda Revenue Authority has issued a three-month ultimatum to second hand car dealers to clear their old stock or else they risk being impounded by the tax body. The commissioner Customs Dickson Kateshumbwa announced that the ban, which was passed by parliament for vehicles older than 15 years, goes into effect October 01.

The ban on the importation of second had cars, was aimed at fighting environmental pollution and help reduce road accidents, which have been blamed on older cars. But even after parliament passed a policy, second hand cars dealers have continued to import cars that are 15 years older into the country, forcing the tax body to swing into action.

URA’s commissioner custom Dickson Kateshumbwa now warns that no car that was manufactured before 2004, will be allowed into the country and even those on the market will be impounded after three months from 1st October this year to clear stock.

The tax body says that URA has cleared over 5,325 cars but unfortunately many are still in transit

But to the dealers, this is unfortunate because most of Ugandan cannot afford new cars

But the ban has come with cost.

Last financial year 49,559 old vehicles where imported registering 1.3 trillion shillings as revenue In June 5382 cars where imported and 100 billion was recorded