Toyota top car exporter to Uganda

After banning of imported stolen vehicles, Dan has emerged as Thailand's top car exporter and top 4x4 exporter to Uganda, Kenya and other East African countries as Tanzania and Malawi just as we were Thailand's top car exporter and top 4x4 exporter to Southern African countries. Please note that right now while you can only import vehicles from between 2001 and 2008 as Kenya only allows importation of cars that are less than eight years old. Uganda used to have no such restrictions but this year (2008) Uganda will also have this eight year restriction. We are sending mostly used second-hand Toyota Hilux Tiger and nearly new and new Toyota Hilux Vigo to Uganda, Kenya and the rest of East Africa. Please see their Images (Pics) at http://www.thailand-dealer.com/pics.html.

Please note that Dan is Thailand's largest exporter to Africa. People may find it daunting to export to Uganda but not with Soni. We can put your vehicle onboard a ship heading to Mombasa or Dar es Salam today. Every Monday, Tuesday and Wednesday we are busy loading up our customers vehicles onboard the ships heading their way. Email us now at [email protected] and discover the Dan difference. Dan is family-owned and family-operated since 1911 and is known for its superior integrity, great customer service, great prices, great selection, great quality and great speed of delivery.

Uganda

Uganda has recently increased its import tariff on used commercial vehicles from 7% to 25%. Used Car dealers are claiming that this is killing the sector.

Muhamed Tariq Javaid, the Used Cars Importers Association chairman, and the managing director of Coin a car depot in Ntinda, recently told a press conference at his office, that since the tariff was effected on February 1, their sales had dropped by 40%.

The dutiable Value (customs value) in Uganda is determined in accordance with The General Agreement on Trade and Tariffs (G.A.T.T) valuation method.

Vehicles in Uganda are taxed as follows:

Import Duty: 25% of dutiable value as determined by UGA

VAT : 18% of value inclusive of Import Duty (what you can call double whammy)

Environmental tax: 20% of CIF Kampala price

Import commission: 2% of Dutiable Value (may have increased)

Withholding Tax: 6% of Dutiable Value

There is an excise duty of 10% on selected cases. There is also duty remission on some commercial vehicles. Details on these can be obtained from Uganda Revenue Authority Website.

2008 News from Uganda on Car import

New taxes blamed (from http://www.independent.co.ug/index.php?option=com_content&task=view&id=708&Itemid=2946)

Car import taxes imposed during the 2008/09 Budget speech are threatening Uganda’s clout as a regional car market, dealers have said.

They also said reduction of tax on light trucks should have included one ton pick-ups as these are mostly bought by farmers and other rural folk.     

Minister of finance Ezra Suruma increased registration tax on imported used cars from Shs 500.000 to 750.000, and Environmental tax from 10% to 20% of the original import value. Dealers are no longer allowed to import vehicles over eight years old.

“Uganda had become a regional market for East and Central Africa but the recent tax increase may choke the market,” says Mr. Mansoor Ahmed Babar, Managing Director Coin Internal Container Depot.

An 1800 c.c. car now pays import duty 25% of the value of import determined by URA, VAT of 18% computed after adding import duty, 20% environmental tax also charged on original import value of the vehicle Cost Insurance and Freight Kampala and withholding tax of 6% import value.

Mansoor said Uganda, which is now competing with Dubai and Durban in South Africa in car sales may soon fall out because of the heavy taxes.

“We are the easy market for the entire East and Central Africa,” he said, “We are selling cars to Rwanda, Burundi, Tanzania, South Sudan, and DRC.”

Mr. Abdullah Balere at Chatha Motors and Mr. Ejaz Khan Director at EL-Malik motors said the tax is negative as the buyer has to pay more.

“This won’t put us out of business as we transfer the tax to the buyer but in a way it will reduce on our sales,” says Amer Hussein at Cosmos Motors.

According to car dealers, the government should not have increased the tax because it gets high revenues from the transit licenses cars pay to transit through the country in a period of only four hours. A transit licence costs Ush 40,000.

 

East African Community (EAC)

Kenya, Uganda and Tanzania - members of the East African Community (EAC) trading bloc - agreed to implement a customs union from January 2005, abolishing an anti-dumping duty on imported second-hand vehicles. Kenya, the region's biggest economy, was forced to scrap a 20% anti-dumping duty on imported used vehicles as a result of joining the EAC. The other two countries had no import duties. The three Customs Administrations are to administer a common customs law, The Customs Management Act (CMA), procedures and regulations. The East African Legislative Assembly has already enacted this.

 Recently, Kenya has asked the East African Community (EAC) Council of Ministers to reinstate the 20 percent duty on second hand cars in order to protect the second hand industry from the intense competition that has resulted from the relaxation of the duty. Response to this proposal was immediate. The Kenya Auto Bazaar Association’s (KABA) Secretary Cahrles Munyori commented: "Of course they cannot introduce it (suspended duty) unless they want to go against the EAC protocol. Uganda and Tanzania do not have this duty."

On the other side of the dispute are Kenyan car manufacturers, who are, according to Munyori, trying to ensure that only cars younger than 6 years are able to enter the EAC. This would be achieved by amending the Kenya Safety Standards rule which currently requires second hand car imports to be eight years old or younger. Muyori also indicated that Uganda and Tanzania don’t have any law on their statute books that provides for the same result.

Vehicles are imported via Mombasa port in Kenya or Dar-es-Salaam port in Tanzania as Uganda is a landlocked country. Uganda is a part of EACCU. The base for computation of taxes under the EACCU is the value of the goods at first point of entry into the Community ie. Mombasa or Dar-es- Salaam.

 

 

 

 

 

 

 

 

 

 

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