Gov’t asked to revise its tax regime on cars

By Ssebuliba Samuel.

Government has been asked to revise the current tax regime imposed on new vehicles imported into Uganda

The finance committee report on the traffic and road safety

Act 1998 bill 2018 indicates that new vehicles in Uganda pay import duty of 25%, VAT l8%, infrastructure levy 2% withholding tax 6%, and registration fees while cars above 5 years pay environment levy of 35% to 50% which is too high.

While reading the report the vice chairperson Katali Loy said that since no alternative has been provided in the tax proposals to discourage Ugandans from buying used vehicles or to make new vehicles affordable this is not likely to discourage Ugandan from buying them.

Yesterday government succumbed to pressured and increased years from banned vehicles from eight to fifteen.