Importers want review of Bill banning old cars

Kampala.

Car importers have asked government to review the proposal to ban importation of cars that are older than eight years.
Speaking in an interview yesterday, Mr Marvin Ayebale, the secretary general of Associated Motor Dealers, said: “We are with government on the intentions of this Bill but disagree on the approach. We propose gradual phasing out of these vehicles starting with a 15 year threshold.”
“We also propose, he said, “that this law takes effect on July 1, 2019 to enable the public and business operators migrate from the current trends.
The Traffic and Road Safety Act 1998 (Amendment) Bill, 2018, which is before Parliament wants a ban on the importation of cars that are older than eight years, citing that existing restrictions have not helped to cut back on the importation.
Uganda Revenue Authority is yet to comment on how this will affect revenue collection since used cars contribute a large portion to the national purse.

Effect on other businesses
The number of cars entering into the country, as per the proposed new law, will drop drastically affecting many auxiliary businesses such as bonds, clearing and forwarding agents, insurance firms, spare parts dealers and car service points.
On average, Uganda imports about 4,000 cars per month, majority of which are older than 10 years.
Mr Malik Azhar, a founder member of the Used Car Dealers Association, said: “The proposed Bill will put vehicle ownership beyond the reach of many Ugandans and will have a great effect on revenue collections.”
Our recommendation to the government, he said, is to amend the threshold to 15 years and gradually reduce in a phased manner in order to avoid any vacuum.
The Bill, however, exempts special purpose motor vehicles such as breakdown lorries, crane lorries, fire fighting vehicles and concrete mixer lorries, from the ban.
Others are road sweeper lorries, spraying lorries, mobile workshops, forklifts, mobile drilling rigs and mobile radiological units, among others.
Also exempted are work trucks, tanks and other armoured fighting vehicles, cesspool emptiers, water bowser, bullion spreaders, bitumen spreaders, bucket trucks, aircraft re-fuellers, spraying trucks, workshop vans and mobile banks.
Agricultural or forestry tractors, earth moving motor vehicles, dumping machines and road rollers are also not affected by the Bill.
However, the Bill if effected into law, will not affect vehicles that are already in transit.
The contentious Bill signed by Works minister Monica Azuba Ntege also proposes revisions on car registration fees and the environmental levy.
It has already been endorsed by Cabinet and Prime Minister, Ruhakana Rugunda, recently tasked Ms Azuba to present it for First Reading in Parliament.
Deputy Speaker Jacob Oulanyah has since asked the Physical Infrastructure committee to scrutinise the Bill.