Hello, Uganda 🇺🇬
Below are the taxes levied on motor vehicles in Uganda:
1. Import Duty: This tax rate varies depending on the use and classification of the vehicle by customs in line with EAC common tariff rates. It can be 25%, 10%, or 0%.
2. VAT: The Value Added Tax rate is 18%.
3. Withholding Tax: A tax rate of 6% applies.
4. Infrastructure Levy: A tax rate of 1.5% applies.
5. Environmental Levy: This tax rate applies only to used vehicles aged between 9 and 14 years, passenger vehicles, and lightweight vehicles with gross weight below 4 tons. The applicable rate is 50%.
If you are importing a vehicle in Uganda, the taxes levied by URA (Uganda Revenue Authority) are guided by the value of Cost Insurance Freight (CIF) on land or water CI on air.
The following taxes apply:
- Import Duty (ID): 25% * CIF
- VAT: 18% * (CIF + ID)
- WHT: 6% * CIF
- Infrastructural Levy: 1.5% * CIF
- Environmental Levy:
- 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: They are not allowed.
The value of the car for customs purposes is the cost of the car plus insurance and freight. For example, if the cost of the car is 45M, then the cost of shipping and insuring that car will increase the value.
The taxes will then be computed as follows:
- Import Duty: 25%
- VAT: 18%
- Withholding Tax: 6%
- Infrastructure Levy: 1.5%
- Registration fees: Ranging from UGX 1.5M to over UGX 2M depending on the CC.
- Form fees: UGX 18,000
- Third-party insurance: About UGX 30,000.
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