The Ministry of Finance has urged wider stakeholder consultations on Uganda’s electric vehicle (EV) taxation and industrial policy, while defending government’s continued focus on local value addition, import substitution and export-led industrialisation.
Speaking during an engagement with industry stakeholders in Kampala, officials said government remains open to reviewing private sector proposals, but insisted the current framework is anchored in building domestic manufacturing capacity.
“We believe that we have the raw materials required for these industries. They are locally available. The question from the association is about actual importation of EVs, but government is promoting value addition in Uganda,” said Godfrey Byamukama, Assistant Commissioner for Private Sector and Investment at the Ministry of Finance, Planning and Economic Development.
Byamukama acknowledged concerns from industry players questioning Uganda’s readiness to fully localise electric vehicle manufacturing, but said such issues must be addressed through formal policy channels, particularly during the national budget process.
“You could be right that Uganda may not be fully ready, but that requires discussion during the process of policy formulation. We have just concluded the budget process where tax measures were introduced, including new taxes and removal of others,” he said.
The ministry urged associations and private sector actors to submit structured proposals for consideration in future policy reviews, rather than relying on informal engagements.
“I would advise that we come up with clear justification on why Uganda may not be ready to promote value addition in EVs. You may be right, but the government’s position now is import substitution and export promotion,” Byamukama said.
He emphasised that government remains open to technical input and consultation ahead of the next budget cycle.
“Let us engage in the next budget process. We like dealing with associations. Government is always consultative. Submit your position to the Ministry of Finance, and we shall study it and consult widely,” he added.
Byamukama pointed to ongoing industrial initiatives such as Kiira Motors and other emerging local manufacturers as evidence of Uganda’s gradual transition towards domestic vehicle assembly.
“We have Kiira Motors and we are trying to encourage importers to transition into local assembly. That is the direction we are taking as an industry,” he said.
While addressing concerns around duty remission and import structures, he said current Uganda Revenue Authority (URA) measures are aligned with government’s broader industrial policy of incentivising assembly and job creation.
“That window of duty remission is meant to encourage assembly and job creation as we transition into real manufacturing,” Byamukama noted.
The ministry also proposed enhanced coordination and public engagement on tax policy, including a structured forum involving URA and the Uganda Investment Authority to improve communication on incentives and tax frameworks.
“Taxation should not only be about revenue collection. It is also about investment promotion. If we only focus on collection and investments do not come in, we may not maximise revenues,” he said.
He added that a dedicated engagement platform could help investors better understand Uganda’s tax regime and reduce recurring disputes over incentives and exemptions.
The ministry reaffirmed that while it remains open to reviewing specific concerns, government’s overarching policy direction continues to prioritise domestic industrial capacity building and positioning Uganda as a regional manufacturing and export hub for electric mobility.