Tuesday, September 20 2016
Buying of cars online is one thing many are embracing lately most especially when one comes across bargains. The tax man has even made life simpler by adding a tool to their website that gives you an estimate of how much taxes you would be paying for your preferred car.
On the URA website, you find a link to the Motor Vehicle Tax Calculator which redirects you to the computation of taxes on imported vehicles.
We were interested in this Toyota Ractis which is not a common vehicle on Kampala streets now but that won't be the case five years later.
It's CIF to the nearest port which is Mombasa for those in Uganda for example was US$ 2,360. It was manufactured in 2007 making it 9 years old assuming we were to import it in the country this year. The exchange rate for the US dollar [which varies from time to time] was $ 3,389.02.
Once the above fields are entered, the tool then returns with the total tax which in this case was Ugx: 8,398,278/- It should be recalled that before getting to this stage, you must have paid the US$ 2,360 which is approximately 7,960,000/- to the overseas seller who happens to be in Japan at least for the majority of the vehicles in Kampala.
Once the money is received, he then arranges to ship your car to Mombasa, it normally takes about 28 days or there about. During the time of shipping, you can arrange with a clearing and forwarding company to have your car delivered at your door step or better still, get onto one of these buses with free wifi on board to Mombasa and drive back with your new ride, it's fun.
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