URA Discusses New Tax Policies with Spear Motors
Spear Motors Limited, led by Managing Director Gilbert Wavamunno, recently met with Hajji Asadu Kisitu, the Acting Commissioner of the Customs Department at the Uganda Revenue Authority (URA). The meeting was held to discuss the effects of recent tax policy changes on the automotive industry.
The discussion primarily focused on the government’s decision to maintain a 10% tariff on the importation of motor vehicles designed for transporting goods with a gross vehicle weight exceeding 20 tons. Spear Motors sought clarification on whether this tariff could be reduced.
Hajji Asadu explained that URA enforces tax policies that have been approved by Parliament and signed into law by the President. He noted that the current 10% tariff is set for one year, allowing time for discussions between the business sector and the government. These discussions could potentially lead to policy adjustments in the following financial year if necessary.
“Tax policy is developed by the Ministry of Finance, which is open to input from the business community regarding the impact of policies on specific sectors. However, to initiate such discussions, businesses should conduct research and present detailed reports,” Asadu advised.
Alexander Rubanga, the Manager of Tariff at URA, added that the government is cautious about increasing the tariff to higher levels, such as 25% or 35%. The goal is to strike a balance that protects local industries while also supporting sectors like truck assembly, including the state-of-the-art assembly plant in Mpigi.
“The government aims to support the transport sector, which is vital for the economy. By using tariff bands, it seeks to protect local industries and encourage domestic assembly of trucks. However, the 10% tariff is temporary and will be reviewed based on economic conditions,” Rubanga stated.
Mr. Wavamunno expressed gratitude for URA’s guidance and shared insights into Spear Motors’ operations. The company is the official distributor for Mercedes-Benz Group AG and Daimler Trucks AG of Stuttgart, Germany, among other brands.
