URA Engages Motor vehicle Dealers on Valuation

Uganda Revenue Authority recently engaged executives of motor vehicle dealers’ associations on discrepancies in valuation to collect their feedback before the publication of the motor vehicle valuation database.

“We did not submit the valuation database for this month because we know that you have issues that we need to address transparently because we recognize that you support the business of revenue,” Brenda Kateu Wenene, the acting Assistant Commissioner of Trade, stated.

The motor vehicle dealers raised concerns about the values of different motor models, the fact that some values have not been reviewed for a period of five years, and the depreciation of values in the region.

“We are requesting a reduction of values for German cars because there is low demand for them. Additionally, we would like to see devaluation of the BMW X5 just like the X3 was depreciated, and values for the 4WD and 2WD should be the same since we buy them at the same price,” Amir Hussain, chairperson of the of the Used Motor Vehicles Association, said.

Muhammed Hasnain, a member of the Delight Car Dealers Association, sought clarification on the websites from which URA derives their values for the different models of motor vehicles, noting that the Subaru Outback BR9 and Subaru Outback BRM are the same model and should have the same value but are given different values in the database.

Charles Kavumbi, chairman of the Association of Motor Vehicle Dealers (AMD), recommended that the valuation guide be publicized quarterly as opposed to monthly.

Addressing the traders’ issues, Abel Kagumire, the Commissioner of the Customs Department, emphasized the credibility of the valuation database and explained that Customs arrives at the given values scientifically.

“There is a scientific way of how we arrive at values that we can deduce and adjust; we do not use sentiments. However, we give you an opportunity to share your issues so that we can address them and use the guide to help us generate revenue,” Kagumire explained.

He also provided an update on the concerns about motor vehicles paying taxes at the port, citing that the challenge is with global security clearance.

Nonetheless, the Taxman is working with the Ministry of Works and Transport to adjust the system so that traders can pay taxes for the vehicles at the port but issue the number plates after the vehicles have been bought.

Kagumire also used the engagement to encourage the motor vehicle dealers to support the Kiira EV assembly plant and import more environmentally friendly motor vehicles.

“Why are you always clearing used cars? Can the mindset change so that we promote the production of motor vehicles in our country? We are also promoting electric vehicles (EVs) and hybrid cars, so there will be a lot of incentives for the whole region in the next financial year; therefore, I advise you to evolve so that you can compete,” Kagumire stated.

Correspondence by Jacquiline Emodek

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