KACITA asks URA to withdraw directive on clearance of 9- year old cars

By Prossy Kisakye

Kampala City Traders Association (KACITA) has asked the Uganda Revenue Authority, to withdraw its latest directive on imported motor vehicles.

Last week, URA issued a notice to vehicle importers that beginning 1st July, cars that are 9 years and more from the date manufactured shall no longer be cleared under the warehousing regime.

In a statement, the tax body said the custom clearance for such motor vehicles shall be facilitated under the single customs territory arrangement where taxes will be paid upon arrival at the point of entry at either Dar es Salaam or Mombasa.

 Addressing journalists this morning, KACITA Chairman Thaddeus Musoke says they have received several complaints from car importers who claim they are not ready and thus want the implementation of the directive halted.

Musoke says many are concerned that their vehicles will be stolen before clearance since the Customs Act provides for 270 days as the warehousing period of any goods imported into the country will be rendered useless.

He meanwhile warns that if the directive is not relaxed, over 3000 casual laborers employed in the car business will be rendered jobless.

Written by Noelyn Nassuuna