FINANCE ACT, 2006

An Act to provide for the imposition of an environmental levy on used motor vehicles and home appliances, remission of tax arrears owed by Government, alteration of the fees under the Traffic and Road Safety Act, and to provide for the miscellaneous repeals of certain enactments relating to taxation which are no longer needed; and for other related purposes.

PART I
FEES PAYABLE UNDER THE TRAFFIC AND ROAD SAFETY ACT.

1. Substitution for fees payable under the Traffic and Road Safety Act.

The fees specified in the First Schedule to this Act which are payable under the Traffic and Road Safety Act shall be paid in respect of the licenses and services correspondingly specified in that Schedule.

PART II
REMISSION OF GOVERNMENT ARREARS OF TAXES.

2. Remission of Government arrears of taxes.

(1) All arrears of import duties, excise duties, value added tax and withholding tax owed by Government to Uganda Revenue Authority are remitted.

(2) The remission under subsection (1) includes arrears of value added tax of local authorities where Government committed to meet the tax.

(3) The remission under subsection (1) does not include arrears of tax withheld from—

(a) a payment of employment income under section 116 of the Income Tax Act; and

(b) a supplier of goods or services or both under section 119(1) of the Income Tax Act.

PART III
ENVIRONMENTAL LEVY.

3. Imposition of environmental levy.

(1) There is imposed an environment levy on every person who imports motor vehicles of eight years or older or used household appliances.

(2) The levy shall be payable at the rates prescribed in the Second Schedule to this Act.

(3) The value of the motor vehicles under subsection (1) shall be the value ascertained for the purposes of customs duty under the laws relating to customs.

(4) The levy shall be collected by Uganda Revenue Authority before clearance of the goods through customs.

PART IV
AMENDMENT OF THE TRAFFIC AND ROAD SAFETY ACT.

4. Amendment of section 17 of the Traffic and Road Safety Act.

Section 17 of the Traffic and Road Safety Act is amended by inserting immediately after subsection (3) the following—

“(4) Where the licensing officer is satisfied that the owner of the vehicle could not surrender the registration plates for reasons beyond the owner’s control, the licensing officer shall grant a waiver of the unpaid fees for the period the vehicle was not in use.

(5) Where the registration plates have been surrendered for non use, they will be kept by the licensing officer for a period not exceeding five years from the date of expiry of the licence and thereafter the owner shall apply for substitute registration plates on payment of a prescribed fee.”

PART V
REPEAL OF CERTAIN REDUNDANT TAXATION ENACTMENTS.

5. Repeal of certain redundant taxation enactments.

(1) The enactments specified in the Third Schedule to this Act are repealed.

(2) For the avoidance of doubt, the repeal of the enactments by subsection (1) shall not be taken as exempting any person from liability to tax or duty under any such enactment substituting before the commencement of this Act.

First Schedule.

s. 1.

Fees for services and various documents under the traffic and road safety Act, 1998.

(b) Passenger vehicles, including light omnibuses having seating accommodation not exceeding 28 passengers

1,200,000

(d) Medium omnibuses and heavy omnibuses having seating accommodation for more than 28 passengers

1,200,000

	Item	Fees (Shillings)
1.	Registration fees on new registration—
	(a) Sedan cars, saloon cars, estate cars but excluding dual purpose goods passenger vehicles	1,200,000
	(c) Estate and station wagon vehicles with engine capacity of 3500 cc, or above	1,700,000
	(e) Ambulances, prisons vans	300,000
	(f) Hearses	800,000
Goods vehicles (including dual purpose vehicles/passenger vehicles), light goods vehicles
	Type of vehicle—
	(g) Agricultural tractors	250,000
	(h) Goods vehicles with less than t {mprestriction ids=”1,2,3″} wo tonnes loading capacity	900,000
	(i) Goods vehicles with two tonnes or more of loading capacity and less than seven ton L/C	1,000,000
	(j) Goods vehicles with seven tonnes or more and less than ten tonnes loading capacity	1,050,000
	(k) Goods vehicles with ten tonnes or more of loading capacity	1,250,000
	(l) Prime movers/Tractor heads	1,250,000
	(m) Engineering plant and other related vehicles	1,500,000
	(n) Agricultural trailers	300,000
	(o) Trailers and semi trailer with gross weight less than seven tonnes	700,000
	(p) Trailers and semi trailer with gross weight of seven tonnes or more	1,000,000
2.	Re-registration fees for motor vehicles	200,000
3.	Registration fees for motor cycles	250,000
4.	Re-registration fees for motor cycles	100,000
5.	Registration fees for personalised number plate vehicles	6,000,000
6.	Registration fees for personalised number plate for motor cycles	1,500,000
7.	Alteration of particulars motor vehicles (each item)	20,000
8.	Certified copies of record	40,000
9.	Search fees	20,000
10.	Dealers motor vehicle licence per year	200,000
11.	Duplicate number plate	20,000
12.	OTV Licence—
	(a) Commercial vehicles not exceeding two tons loading capacity	70,000
	(b) Commercial vehicles exceeding two tons loading capacity	180,000
13.	Transfer fees—
	(a) Motor Cycle	50,000
	(b) Motor cars and other dual purpose vehicles	60,000
	(c) Other motor vehicles, trailers, tractors or engineering	80,000
14.	Duplicate receipt and other licence certificate	20,000
15.	Duplicate registration book	20,000
16.	Duplicate driving permit	35,000
17.	Vehicle examination fees (Inspection fees)—
	(a) Motor Cycles	7,000
	(b) Motor cars and other dual purpose light goods vehicles, vehicles excluding light goods vehicles	12,000
	(c) Other motor vehicles, trailers, tractors or engineering	10,000
	(d) Agricultural tractors	10,000
18.	Driving permits (Original)—
	(a) one year	50,000
	(b) three years	60,000
	Driving permit (renewal)
	(a) one year	40,000
	(b) three years	50,000
19.	Driving permit exchange—
	(a) one year	50,000
	(b) three years	60,000
20.	Driving permit provisional	18,000
21.	Accident report	60,000
22.	Sketch plan	25,000
23.	Test fees (per class)	25,000
24.	Endorsement of third party interest	50,000
25.	Extention (per class)	35,000
26.	Duplicate order form	20,000
27.	Form fees (per form)	6,000
28.	Order form (set)	5,000
29.	Cancellation fees	20,000
30.	De-registration for export—
	(a) Motor cycles	180,000
	(b) Station wagon	350,000
	(c) Salon vehicles	300,000
	(d) Commercial vehicles	400,000
	(e) Agricultural tractors	15,000,000
	(f) Omnibus	400,000
	(h) Engineering plant and other related vehicles	20,000,000
	(i) Agricultural trailer	5,000,000

Second Schedule.

s. 3.

Environmental levy.

(e)
Used motorcycles, scooters, mopeds, bicycles and used spare parts of motor vehicles or of any of the items mentioned in this paragraph
20%

(a)

Motor vehicles (excluding goods vehicles) which are 8 years old and above

20% of CIF value

(b)

Cookers

Shs.50,000/=

(c)

Radios

Shs.50,000/=

(d)

Other household appliances

Shs.50,000/=

(f)

Used clothing, used shoes and other used articles

10% of CIF value

Third Schedule.

s. 5.

Redundant taxation enactments.

Repeal of redundant enactments

1. The Customs and Excise Act.

2. The Customs (Dumping and Subsidies Rates) Act.

3. The Customs Tariff Act.

4. The Customs Management Act, Laws of the Community.

5. The Local Industries (Refund of Customs Duties) Act.

6. Sections 1 and 3 of the Finance Act, 1989.

7. The Second Schedule to the Finance Act, 1989.

8. Section 3 of the Finance Act, 2001.

9. The First Schedule to the Finance Act, 2001.

10. Section 2 of the Finance Act, 2002.

11. The First Schedule to the Finance Act, 2002.

12. Section 2 of the Finance (No.2) Act, 2002.

13. The First Schedule of the Finance (No. 2) Act, 2002.

14. Section 2 of the Finance Act, 2003.

15. The Second Schedule to the Finance Act, 2003.

16. Section 2 of the Finance Act, 2005.

17. The First Schedule to the Finance Act, 2005.

*History*
Legislation	Number
Act	32/2006
Act	18/2008
Act	14/2009
Act	22/2010
Act	6/2012
Act	18/2013

Cross References.

Customs (Dumping and Subsidies Rates) Act, Cap. 336.

Customs and Excise Act, Cap. 335.

Customs Management Act, Laws of the Community, 1970 Revision, Cap. 27.

Customs Tariff Act, Cap. 337.

Finance (No.2) Act, 2002, Act No. 28 of 2002.

Finance Act, 1989, Cap. 177.

Finance Act, 2001, Act No. 1 of 2001.

Finance Act, 2002, Act No. 1 of 2002.

Finance Act, 2003, Act No. 2 of 2003.

Finance Act, 2005, Act No. 2 of 2005.

Income Tax Act, Cap. 340.

Local Industries (Refund of Customs Duties) Act, Cap. 341.

Traffic and Road Safety Act, Cap. 361.

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