By Caroline Kanshabe
The Uganda Revenue Authority (URA) has responded to the concerns of used car traders by relaxing regulations related to automatic car registration number plates. Commissioner General John Musinguzi recently met with members of Uganda’s Pakistani business sector to address issues surrounding the supply of license plates for unsold vehicles.
Pakistan’s High Commissioner to Uganda, Muhammed Hassan Wazir, highlighted the instability created in the market when license plates are issued before finding buyers. Car importers expressed the need for a more flexible system that allows them to pay all required car taxes and obtain license plates upon securing buyers.
While the Ministry of Works and Transport is responsible for car registrations, URA Commissioner for IT and Innovation, Robert Mutebi, assured that they are working to resolve the problem. He explained that registration number plates are automatically generated when car importers pay taxes, but efforts are underway to separate the two processes, allowing commercial car dealers to conduct business more effectively.
Mutebi emphasized the role of technology in streamlining these procedures and addressing the concerns raised by car traders. The issue primarily affects vehicles manufactured in 2008 and 2009, subject to taxes at entry points under the Single Custom Territory, impacting dealers who face challenges with the timely issuance of license plates.
Traditionally, license plates are issued when potential buyers are secured. However, the delay in plate issuance has led to a decrease in the value of vehicles sitting on the market, as buyers tend to prefer cars with up-to-date plates.
