Car dealers want importation ban extended to 15 years
Parliament, under the Finance committee is receiving Public hearing on Tax Proposals for FY 2018/19. The tax proposals were presented by Finance Minster David Bahati on Tuesday 24thApril 2018.
Amongst the proposals was a ban on the importation of used cars as old as eight years.
Today, a section of Car dealers resisted the move, saying that besides breeding unemployment, the ban is likely to see a continued use of very old cars already in the country and thus endanger the environment through poisonous emissions.
Speaking on behalf of the group, Mr Marvin Ayebare form the Association of Car Bond owners and Operators said that Marvin Ayebare, the government should instead ban cars older than 15 years for smaller vehicles and 25 years for commercial vehicles.
“Old cars do not emit dangerous fumes except if not well serviced by the users” argued Mr Ayebera
The further stated that since all vehicles undergo pre-verification of conformity inspection by the Uganda National Bureau of Standards (UNBS) there should be no worry.
“The drastic importation age limit will render over 11,000 direct benefactors in the industry unemployed,” said Ayebare.
“There are other indirect beneficiaries such as restaurants, security firms and fuel stations and banks among others will be affected in considerable measure due to the industry downturn,’ he added.
The car dealers warned of “unprecedented transport costs that will further trek down to the cost of living” in case the ban is effected in favour of the 2011 model.
The group, composed of eight associations; the Associated Motor Dealers 2015, Used Car Dealers Association of Uganda, Association of Car Bond Owners and Operators, Uganda Clearing Industry and Forwarding Association (UCIFA), Uganda Freight Forwarders Association (UFFA), Regional Lorry Drivers and Transporters Association (RLDTA) as well as Spare Parts Dealers Association, presented their concerns to Parliament’s Committee on Finance, Planning and Economic Development.