Post: Importers want Gov’t to review the Bill banning old cars in order to prevent losses

Importers want Gov’t to review the Bill banning old cars in order to prevent losses

Used automotive deal­ers want Uganda to overview the proposal banning used or old automobiles as a way to forestall losses and restrict the shocks of job redundancies

Uganda authorities is about to roll out new laws that can embody ban on importation of used vehicles or vehicles which are 8 years old and more.

Presently, nearly all of passenger autos imported to Uganda have been manufactured morethan 8 years in the past, however local authorities need to cut back this by atleast half.

According to the Japan International Co-operation Agency (JICA) report launched in 2017 in collaboration with the East African Community (EAC) Secretariat, the report indicated that on average, vehicles within the East African area are between 15 to 20-years-old.

As a result of 2017 figures, the report advised the community to reducing of the age restrict for imported autos to 5 years by 2021, in an effort to promote local assembly within the area in addition to curb the speed at which the ozone layer is being depleted.

The proposal to be implemented next financial year can be anticipated to assist cut back on the adverse environmental results trigger by aged and inefficient autos.

Nevertheless, a sec­tion of Automotive deal­ers re­sisted the bill, and requested the government to implement a proposed legislation to severely prohibit imports of older vehicles in phases in order that they’ll regulate their operations to forestall losses and likewise restrict the shocks of job redundancies.

Uganda asked to review Bill banning old cars in order to prevent losses
Uganda asked to review Bill banning old cars in order to prevent losses

Marvin Ayebale, the Secretary General of the Association of Motor Sellers in Uganda stated just lately in a meeting;

We aren’t in opposition to the government proposal of banning the importation of second hand automobiles, however more time must be given to the sellers since some have made orders for the autos from Japan and different international locations. If the government implements the proposal, automotive sellers will probably be affected.

However under the same proposals, some autos of particular usage are exempted from the ban and these are breakdown vehicles, cranes, concrete mixers, road-sweepers, some lorries, fire fighting autos, and different utility autos.

As well as motor autos that are in transit earlier than the commencement of this Act and which arrive in Uganda by September 30, 2018 may also be exempted from the ban.

The government under the new Traffic and Highway Safety Act 1998 (Amendment) Bill, 2018 tabled earlier than parliament proposes that an individual who imports a motorized vehicle which is 5 years old or more from the date of manufacture shall pay an environmental levy on that car.

The environmental levy shall be collected by the Uganda Revenue Authority earlier than clearance of the car.

Just a quick reminder, the 8th Uganda UK Investment Convention is back, big and better. To attend the event this year, register for the 8th Uganda UK Investment Convention at Event Brite and get your ticket now.

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