I always encourage my customers and friends to import their cars(especially those who can afford to pay for a car at once) because it is cheaper, better, and easier. Below are the taxes levied on motor vehicles in Uganda:
1. Import Duty: Is at 25% * CIF
2. VAT: The Value Added Tax is at 18% * CIF
3. Withholding Tax: Is at 6% * CIF
4. Infrastructure Levy: Is at 1.5% * CIF
5. Environmental Levy: This tax rate applies only to used vehicles as explained below;
– For vehicles aged 0-9 years: No tax is applicable.
– For passenger vehicles aged 10-15 years: A tax rate of 50% is applicable.
– For goods vehicles aged 10-15 years: A tax rate of 20% is applicable.
– For vehicles above 15 years: No Longer allowed in the country.
6. Registration fees: Ranging from UGX 1.5M to over UGX 2M depending on the CC.
7. Form fees: UGX 18,000
8. Third-party insurance: Between UGX 30,000 to 80,000
Suppose you are importing a vehicle in Uganda. In that case, the taxes levied by URA (Uganda Revenue Authority) are guided by the value of Cost, Insurance, and Freight (CIF).
Therefore, the value of the car is the cost of the car plus insurance and freight/shipping. For example, if the cost of the car is 26M, then shipping and insurance costs are calculated to be added to the initial car cost.
On this note, if you want to enjoy your car, I encourage you to be the first owner(of that car you wish to drive) in Uganda.