Following the commencement of the new financial year and the subsequent implementation of the new tax amendments, Spear Motors Limited, led by their Managing Director Gilbert Wavamunno, paid a courtesy visit to the Acting Commissioner Customs Department-Hajji Asadu Kisitu to discuss the impact of these tax amendments on their automotive industry.

The engagement mainly focused on the government’s decision to keep the 10% tariff on the importation of motor vehicles for the transport of goods with a gross vehicle weight exceeding 20 tons. The team sought clarity on the possibility of lowering the tariff band.

Asadu explained that URA implements government tax policies that have been passed by parliament and assented to by the President.

He further clarified that the stay of the 10% tariff band in question is only for a year, thus giving room for discussions between the business sector and government, which can lead to improvements in the next financial year if deemed necessary.

“Tax policy is a function spearheaded by the Ministry of Finance, and they are open to discussions from the business community on how a policy impacts a particular sector. But such discussions can only commence if you do some research and present a paper with concrete facts on the same,”  he advised.

Alexander Rubanga, the Manager of Tariff, added that the government is careful and sensitive not to raise the tariff band to 25% or 35% as it looks at balancing as opposed to hurting the industry while also protecting those with assembling plants such as the state-of-the-art truck assembly truck in Mpigi.

“The government wanted to support the transport sector since it’s a strategic one. As a result, it uses tariff bands to protect local industries and is therefore interested in having these trucks assembled here. However, the stay of 10% is only for twelve months and it will be reviewed according to the economic strategic direction,” he said.

Mr. Wavamunno thanked URA for the advice and shared the nature of their business operations.

Spear Motors Ltd. is the official distributor for Mercedes-Benz Group AG and Daimler Trucks AG of Stuttgart, Germany, among others.

Correspondence by Lambert Brian Rusoke