URA, car importers agree to share data on taxation challenges

The Commissioner General of Uganda Revenue Authority, Mr John R Musinguzi, and members of the Delight Car Dealers Association have agreed to cooperate and share information in order to resolve taxation challenges in the import business.

According to Musinguzi, substantial revenue that the association contributes adds value to Uganda hence the need for a good partnership with URA. 

During a meeting last week, Malik Azhar, chairperson of the association, requested for extension of clearance on the used units manufactured in 2009 because of the shipment delay that happened in November 2022. The delay made them over 13 years hence against the law. He revealed that these units are stuck in Mombasa yet they amount to revenue of 3.5 billion.

He also asked URA to allow them to only pay taxes at Mombasa for units but not issue out the number plates till they are sold off since the Ugandan market is more focused on the latest number plates and they end up making liabilities on the units with old number plates.

Malik further requested for reinstatement of the 9 months warehousing instead of the recently amended 6 months that don’t favor their business.

In response, Musinguzi told the team that warehousing cars above 13 years is against the law but advised them to approach ministry of works about the delay and also look for ways on how to avoid future incidences of delay that come from trans-shipments, and stop overs.

He also told the team that issuing number plates after selling off cars requires programming within the systems and the IT team needs more time to resolve it.

He said URA is committed to supporting the growth of businesses in a thriving economy.