{"id":47531,"date":"2023-04-11T18:46:04","date_gmt":"2023-04-11T18:46:04","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/why-banning-old-cars-is-still-a-tricky-issue"},"modified":"2023-04-11T19:15:25","modified_gmt":"2023-04-11T19:15:25","slug":"why-banning-old-cars-is-still-a-tricky-issue","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/why-banning-old-cars-is-still-a-tricky-issue","title":{"rendered":"Why banning old cars is still a tricky issue"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>From July 1, 2023, Ugandans will not be able to import cars older than 15 years to limit environmental pollution.<\/p>\n

A vehicle manufactured in 2008 is the oldest that can be imported into the country this year based on the new 15-year age limit. But newer cars, for instance those manufactured in 2010 onwards, are more expensive to buy from overseas markets such as Japan and attract higher taxes than brand new ones.<\/p>\n

A report tilted: \u2018The State of Ambient Air Quality,\u2019 compiled by a team led by Dr Bruce, discovered that as you enter the city on Masaka road, you are likely to find a high concentration of waste gases around Nateete polluted more than areas such as Naguru and Kololo.<\/p>\n

On May 31, 2018, government banned cars older than 15 years (from September 2018) from entering the country following the enactment of the Traffic and Road Safety (Amendment) Act 2018. According to the parliamentary website, the Act extended the age of cars exempted from environmental levy to eight years from the original five years and the environmental levy tax burden now shifts to older cars. The levy is now 50 per cent of the vehicle\u2019s value.<\/p>\n

Member of Parliament Henry Musasizi, the chairperson of the Committee on Finance, Planning and Economic Development, then supported the move, but cautioned Parliament against depriving hundreds of employment.<\/p>\n

\u201cThe used motor vehicles industry comprises of car importers, forwarders totaling to 11,139 people. The ban on the importation of old vehicles will render 11,000 direct beneficiaries of this unemployed,\u201d he said.<\/p>\n

He also called for the reduction of taxes on new cars as an incentive to discourage purchase of older ones.<\/p>\n

Leader of the Opposition in Parliament then, Hon Winfred Kiiza opposed the move saying it will disadvantage poor Ugandans and drive many out of business.<\/p>\n

\u201cLet\u2019s not be blinded, let\u2019s not close our eyes and minds to the reality of our lives. Our population cannot afford the first hand vehicles,\u201d said Kiiza.<\/p>\n

Impact of old cars on taxman<\/b><\/p>\n

In line with Section 64 (k) of the East African Customs management regulations, 2010, Uganda Revenue Authority (URA) sent a public notice that effective July1, 2022, motor vehicles of nine years and above from the date of manufacture shall no longer be cleared under the warehousing regime.<\/p>\n

According to URA, the new administrative measure will phase out the previous norm which allowed for warehousing of motor vehicles for a period up to nine months.<\/p>\n

\u201cIt is aimed at saving government revenue held by delayed warehousing of such motor vehicles.\u201d<\/p>\n

Abel Kagumire, URA\u2019s Commissioner of Customs, revealed that restricting the importation of these vehicles will also avert the recurring risk of such vehicles \u2018expiring\u2019 in car bonds before taxes have been cleared.<\/p>\n

\u201cFor instance, motor vehicles imported at 14 years from the date of manufacture hit 15 years during the nine months allowable warehousing period and cannot be allowed on the roads since they have not been cleared and taxes have not been retrieved. In March and December 2021, 365 vehicles with a value of Shs4,529,183,401 in taxes expired during the warehousing period.\u201d<\/p>\n

Impact on car dealers<\/b><\/p>\n

However, this ban has had an impact on the car dealership business and Shafique Mutebe of Black Power auto centre shares grievances:<\/p>\n

Unfriendly tax regime<\/p>\n

Mutebe says Uganda\u2019s tax system makes owning a newer car almost impossible for the bigger part of the population.<\/p>\n

\u201cWhile they may want someone to buy a 2010 model, one may not have that money. Even if they do, the tax regime for cars is out of range. For example, if a car costs $20,000, the taxman will ask for almost the same in cost, freight and insurance. That has scared many people from adjusting to the newer cars,\u201d he says.<\/p>\n

Double standards<\/b><\/p>\n

While the main agenda for the ban is to control emissions, Mutebe says it was a very wrong decision that the East African Community (EAC) decided to take.<\/p>\n

\u201cMuch as they are looking at protecting the environment in regards to emissions, Uganda has not got to an alarming level. Many of the banned cars here are still being driven in their countries of origin. For example, the Audi 2003 A4 is still in use in Germany, and Poland where the emission regulations are tighter compared to what we have in Uganda,\u201d he says.<\/p>\n

Varying economies<\/p>\n

While the same law was passed in Kenya and is seemingly thriving, Mutebe says the EAC representatives who engineered this did not scrutinise the conditions of the people in the member countries.<\/p>\n

\u201cThe financial muscle of Ugandans cannot be compared to that of Kenyans seeing that our economy is lower than theirs so we cannot do things at their pace. Even if one wanted to buy a Lexus hybrid, they may opt for a Harrier to save. Others will go to second-hand bonds to get a car within their means,\u201d he says.<\/p>\n

Impact on sales<\/p>\n

With very many in this industry, the struggle is to ensure that they remain in business but the decline in sales is huge.<\/p>\n

\u201cThere are so many cars that were removed from the production line yet Ugandans have not got a chance to drive owing to this policy. However, while car dealers may bring in the required cars, not many Ugandans can afford them,\u201d he says.<\/p>\n

For those that insist on buying older cars to suit their pocket, Mutebe says some have opted to register it in a foreign land, such as South Sudan then cross with it into Uganda.<\/p>\n

\u201cHowever, there are several charges to that such as registering a car with foreign number plate, paying road user licence for say a year or two. Thereafter, they will take it back for de-registration which calls for inspection and comes at a cost,\u201d he says.<\/p>\n

Pros of older cars<\/b><\/p>\n

Compared to the first generation cars, the current cars cannot keep up because the latter was durable hence lasting for years. For example the first generation Rav4s are still on our roads because their owners appreciate the value they offer compared to what is coming out of the factories lately. As long as they can keep them on the road, they are comfortable driving that older car because it is loyal in every sense.<\/p>\n

Raul Kanyike, a car dealer says while there is a push to embrace newer cars, they are made out of soft metal such as aluminium making the body very weak, which makes them weak on the road.<\/p>\n

\u201cTheir engines, more so those brought to Africa, are quite small because manufacturers have learned that our market wants cars that do not need much to fill the fuel tank. These cannot last more than 10 years because their quality is wanting,\u201d he says.<\/p>\n

On the contrary, older cars were manufactured using stronger metal.<\/p>\n

Maintaining these weak cars is also cumbersome because looking at the status of our road, Kanyike says they will not last long owing to several breakdowns.<\/p>\n

\u201cThe cost of maintenance gets higher because the car make-up cannot handle the rough terrain Ugandan roads present. That is unlike the older cars, such as those that are no longer being manufactured such as the Rav4 which were hard cars,\u201d he says.<\/p>\n

Maintenance also includes spare part replacement and Kanyike says those coming in are weaker than what came to the market previously.<\/p>\n

\u201cThe spare parts previously were of superior quality than is on the market currently. The diminishing quality is aggravated by the increasing counterfeits, a combination that makes car maintenance even trickier,\u201d he says.<\/p>\n

Additionally, Ugandans are not into servicing and maintaining their cars routinely.<\/p>\n

\u201cTherefore, they will opt for the cheap spare parts to spend less, or do maintenance just when a problem arises. All these feed into an already weak car hence compromised longevity,\u201d Kanyike says.<\/p>\n

Pros of newer cars<\/b><\/p>\n

However, we cannot negate the fact that being light means less fuel burnt. That is unlike the older cars that burnt more fuel.<\/p>\n

\u201cThat is also credited to the fact that some are semi hybrid or hybrid hence inbuilt with mechanics to ensure less fuel consumption. That also gives one a smoother ride,\u201d he says.<\/p>\n

That is not forgetting that these are more comfortable with several amenities such as receiving calls via Bluetooth.<\/p>\n

\u201cManufacturers are reading into the needs of the current generation hence giving the customer what they want. That way, one is in control of the car without doing much,\u201d Kanyike says.<\/p>\n

Dicey position<\/b><\/p>\n

Unfortunately, the spare parts of these older cars are no longer readily available thus harder to get. Therefore, some people order for them from abroad because there are some countries that still allow for the importation of these.<\/p>\n

\u201cThat said, the cost implication is higher than for those that are readily available,\u201d he says.<\/p>\n

However, if one is bent on keeping their older car, even locally, there are some old car dealers that will get some of these parts by buying cars involved in accidents hence written off.<\/p>\n

\u201cChances are, despite being involved in a nasty accident, some parts can be salvaged and later sold to those in need of spare parts,\u201d he presents an alternative.<\/p>\n

The newer cars are highly computerised and while it reads into the needs of the younger generation, Kanyike shares that the older generation mechanics have not bothered to upgrade their skills to embrace the newer cars.<\/p>\n

\u201cMany of these claim that these cars have \u2018a lot of electricity\u2019 hence not good to hide their inefficiency. As such, the old mechanic is getting phased out. On the brighter side, there are garages opening up today with all the tools needed for problem diagnosis for these newer cars,\u201d he shares.<\/p>\n

The challenge is the cost of doing repairs has increased. For instance, plugging the car to a diagnostic machine may cost you no less than Shs100,000 and the cost increases with the complexity of the car and the garage\u2019s status.<\/p>\n

\u201cThis is crucial before any repairs are done to avoid guesswork. However, previously, this was the cost of the mechanic\u2019s labour. On the flip side, if you insist on going with your manual mechanic, chances are, an error will be made which will mess up the mechanics within, denting its functionality for life as many components are interconnected,\u201d Kanyike says.<\/p>\n

With conversations around doing away with older cars, Mutebe says the age of the car may not necessarily mean it is not road worthy.<\/p>\n

\u201cThe government put a spotlight on emissions without paying attention to other factors such as poor car maintenance. Additionally, why would they stop the importation of personal cars older than 15 years yet allow a truck as old at 1994? It baffles me,\u201d he says.<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. From July 1, 2023, Ugandans will not be able to import cars older than 15 years to limit environmental pollution. A vehicle manufactured in 2008 is the oldest that can be imported into the country this year based on the new 15-year age limit. But newer cars, for instance those manufactured in […]<\/p>\n","protected":false},"author":84,"featured_media":47530,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[233,240,234],"class_list":["post-47531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nWhy banning old cars is still a tricky issue - Uganda<\/title>\n<meta name=\"description\" content=\"From July 1, 2023, Ugandans will not be able to import cars older than 15 years to limit environmental pollution. 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