Government to Lose UGX 30bn As URA Effects Ban on Old Cars

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The Uganda Revenue Authority (URA) will lose at least Shs30b in revenue every month following the commencement of the ban on importation of used vehicles that are 15 years old or more.

The ban was enforced based on the Amended Traffic and Road Safety Act, 2018. The only reprieve the law offered was on car imports which were in transit before the commencement of the Act—July 1, 2018.

Speaking in an interview yesterday in Kampala, the URA Commissioner Customs, Mr Dicksons Collins Kateshumbwa, said cars that were imported before September 30 will be allowed into the country.
Mr Kateshumbwa said now that the deadline has elapsed, the tax body will enforce the law as it is despite the losses that come with such actions.

“On average, we collect about Shs120b every month from imports of about 4,000 vehicles, most of which are used,” he said.
“We are likely to miss an opportunity of collecting some revenue of about Shs30b every month but we shall recover this by tightening our administrative inefficiencies and through other sources,” he added.

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