URA Launches Crackdown on Vehicles Misusing Duty-Free Exemptions

Summary:

• The Uganda Revenue Authority (URA) has launched a joint operation with the Uganda Traffic Police and the Military to crack down on vehicles misusing duty-free exemptions, resulting in over UGX 129 million in penalties and 13 vehicles forwarded to customs warehouses to pay taxes and register.

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KAMPALA, (Examiner) – The Uganda Revenue Authority (URA) has launched a joint operation with the Uganda Traffic Police and the Military to crack down on vehicles misusing duty-free exemptions. The two-week operation, which commenced recently, has already yielded significant results, with over UGX 129 million collected in penalties and 13 vehicles forwarded to customs warehouses to pay taxes and register.

According to URA enforcement officer John Olowo, a total of 125 motor vehicles were impounded, including 78 foreign-registered vehicles and 47 with red number plates, indicating abuse of duty-free exemptions. Many of these vehicles are owned by Ugandans or foreigners residing in Uganda, particularly South Sudanese nationals.

URA Spokesperson Ibrahim Bbossa emphasized the authority’s commitment to combating this vice, stating that continuous driving of non-authorized vehicles on the road affects the taxes URA collects for improved service delivery. Bbossa urged persons with foreign registered number plates to adhere to EAC customs processes and legislation for importation of foreign registered vehicles or follow the registration process and acquire Ugandan number plates.

The operation is projected to generate over UGX 500 million in revenue for URA, a significant boost to the authority’s efforts to meet its revenue targets for the financial year. By cracking down on duty-free abuse, URA aims to ensure that every Ugandan pays their fair share of revenue, promoting improved service delivery and economic growth.

The operation is part of URA’s efforts to combat tax evasion and ensure compliance with tax laws. The authority has been working to improve its enforcement capabilities and has introduced new technologies to help track and monitor vehicles.

The crackdown on duty-free abuse is also aimed at promoting fair competition in the market. By ensuring that all vehicles are properly registered and taxed, URA aims to level the playing field for all businesses and individuals.

The operation has been welcomed by taxpayers and business owners who have long complained about the abuse of duty-free exemptions. They say it is unfair for some individuals to avoid paying taxes while others bear the burden.

The success of the operation is expected to have a positive impact on Uganda’s economy. By increasing revenue collection, URA will be able to fund more public services and infrastructure projects, promoting economic growth and development.