It won’t be wrong in saying that Uganda means business. The economic growth of the country has increased a lot of interest in business circle around the world. Like other African countries, the new car market of Uganda is not very vast, as Ugandans can’t afford to buy new vehicles. There is a clear inclination of people of the country towards used vehicles. Instead of buying new automobiles, Ugandans prefer to buy second-hand vehicles (mainly from Japan) as they get the chance to select any vehicle of their desire at really affordable prices. The price gap between a new car and used ones is very big. There is a difference of around 50% between these vehicles.
The dealership in the country flourished when the restriction on importation of used cars more than seven years was revoked. As the used cars dealership grew, people’s love for used cars increases. There are 13 cars in Uganda per thousand people. Both right and left hand drive vehicles of any age are permitted in Uganda. In order to make sure that the vehicle imported in the country meets the country’s safety standards, JEVIC has been appointed by Uganda National Bureau of Standards (UNBS) to conduct a compulsory road worthiness inspection.
Duties and Taxes:-
The Custom duty value in Uganda is determined in accordance with the General Agreement on Trade and Tariffs (G.A.T.T) valuation method. Taxation or tariffs on importing used vehicles in Uganda are as follows:-
- Import Duty: – 15% of dutiable value
- VAT: – 17% of VAT value
- Import commission: – 2% of Dutiable Value
- Withholding Tax: – 4% of Dutiable Value
Note- There is an excise duty of 10% on selected cases. There is also duty remission on some commercial vehicles.
Uganda is located in Eastern Africa, west of Kenya, south of South Sudan and east of the Democratic Republic of the Congo. Being a landlocked country, surrounded from all the sides by land Uganda has no port of its own, thus to import a Japan used car to Uganda, either the port of Mombasa in Kenya or Dar Es Salaam in Tanzania can be used, both being equal in terms of cost related to import of the vehicle.
Like other East African countries, Uganda is planning to ban the importation of very old vehicles in the country in order to prevent the importation of useless vehicle in the country. The Ugandans have special affection for Japanese vehicles and especially for Toyota vehicles, as it is quite easy to find spare parts for Toyota models. Even though models of Toyota are ruling the roads of Uganda, but still there are opportunities for other makers to make their way in the country. While offering used vehicles, Japanese automakers give the best combination in price, economy, quality standard and flexibility. There are many Japanese exporters who are in this business from many years and are known for offering vehicles that meet customer’s demand and requirements. Even demand for auto parts in the country is also on the rise. There has been strong conjecture that the demand for used vehicles will increase in Uganda due to economic growth in recent years.