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URA cracks down on luxury cars abusing Temporary Road Licenses

The Uganda Revenue Authority (URA) has impounded several high-end vehicles, including Jeeps, BMWs and Mercedes Benzes for abusing Temporary Road Licenses (TRLs) in a crackdown dubbed “Operation Catch Up.”

The operation, which began on February 13th, 2025, targeted areas like Kabalagala, Kololo, Ntinda, Munyonyo, Entebbe, and Ggaba, where luxury cars with expired or improperly obtained TRLs were being used.

The URA Customs team One Enforcement Team discovered that some vehicles had been sold to different individuals without proper documentation, while others lacked valid permits. The authority expects to collect up to UGX 400 million from the impounded vehicles.

The TRLs, issued to foreigners and Ugandans working abroad with valid work permits, allow them to bring their foreign-registered vehicles into Uganda for up to three months. However, the licenses are often abused, with some individuals using them to import vehicles for extended periods or selling them to others without permission.

Driving a foreign-registered vehicle with an expired TRL is an offense, punishable by law. Additionally, lending or selling a vehicle with a TRL without obtaining permission from the Commissioner of Customs is prohibited.

The tax holiday on cars given to returning Ugandan citizens is not transferable. If a sale is made by the returnee, the buyer is expected to pay taxes as a new car importer.

The URA’s “Operation Catch Up” aims to curb the abuse of TRLs and ensure compliance with tax laws and regulations.

By Alex Murungi

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