Most cars on Ugandan roads were imported second hand, mainly from Japan and other Asian and Gulf markets. Importing your own car can save money compared with buying from a local bond, but many people are shocked when the tax assessment arrives. Taxes and levies can add more than half the car's value, and much more for older cars.
Before you send money to a dealer abroad, it pays to understand exactly how URA calculates taxes, which cars you cannot import at all, and what other costs come before you drive away with number plates. This guide explains the main costs as they stood at the time of writing. Rates and fees change, so always confirm with URA before you buy.
First, check the rules on age
- Age limit: motor vehicles that are 15 years old or more from the year of manufacture cannot be imported into Uganda.
- Environmental levy: cars that are nine years old or more from the year of manufacture attract a heavy environmental levy (see below).
- Proposals to tighten rules: government has proposed changes to age limits and levies in the past. Check the latest position with URA before you pay a deposit.
Age is usually counted from the year of manufacture, not the year of first registration abroad. Ask the seller for the exact manufacture date.
Pre-shipment inspection
Used vehicles must be inspected in the exporting country by an inspection company approved by the Uganda National Bureau of Standards (UNBS), and must get a certificate of roadworthiness before shipping. Reputable exporters arrange this, but confirm it is included in your quote. A car that arrives without the right certificate can face delays and extra costs.
The taxes URA charges on imported cars
URA works out taxes on the customs value, which is based on Cost, Insurance and Freight (CIF): the price of the car plus shipping and insurance up to the point of entry. URA uses its own valuation guide for used cars, so the value it uses may be higher than the price on your invoice.
- Import duty: 25 percent of the customs value for most passenger cars.
- VAT: 18 percent, charged on the customs value plus import duty.
- Withholding tax: 6 percent of the customs value. Registered taxpayers can usually claim it as a credit, and some are exempt.
- Infrastructure levy: 1.5 percent of the customs value.
- Environmental levy: 50 percent of the CIF value for cars nine years old or more. For goods vehicles of that age, the rate has been 20 percent.
- Other charges: stamp duty, form fees and registration fees.
A worked example
This example is only to show how the taxes stack up. Your actual figures will depend on URA's valuation.
Suppose URA values a saloon car at UGX 20,000,000 CIF.
- Import duty (25%): UGX 5,000,000
- VAT (18% of UGX 25,000,000): UGX 4,500,000
- Withholding tax (6%): UGX 1,200,000
- Infrastructure levy (1.5%): UGX 300,000
That is about UGX 11,000,000 in main taxes for a car under nine years old, before registration and other fees.
If the same car were nine years old or more, add the environmental levy of 50 percent: another UGX 10,000,000, taking the total to about UGX 21,000,000. This is why a slightly newer car can work out cheaper overall.
Other costs to budget for
- Purchase price and shipping: paid to the exporter. Sea freight from Japan to Mombasa or Dar es Salaam typically takes several weeks.
- Port and transit charges: handling at the port, transit documents and transport to Uganda, either driven or carried on a truck.
- Clearing agent fees: a licensed clearing agent lodges your declaration with URA. Fees vary, so get a written quote.
- Registration fees: URA's published schedule has shown first registration of a saloon car at about UGX 1.2 million, with higher fees for some vehicle types, plus stamp duty.
- Number plates: the Ministry of Works and Transport stated in November 2025 that digital number plates for a first-time registration cost UGX 714,300.
- Insurance: third party motor insurance is compulsory before the car goes on the road. Comprehensive cover costs more.
- Repairs and service: set aside money for tyres, batteries and a first service after a long journey.
Step by step: importing a car
- Choose the car and check its age. Confirm the year of manufacture is within the limit and note whether the environmental levy applies.
- Estimate taxes first. Ask URA or a clearing agent for an estimate using URA's valuation, not just the invoice price.
- Buy from a reputable exporter. Pay through traceable channels and get an invoice, bill of lading and export certificate.
- Arrange pre-shipment inspection with a UNBS-approved inspector.
- Appoint a licensed clearing agent to lodge your customs entry and handle transit.
- Pay taxes through URA's official channels using the payment registration slip. Never pay taxes in cash to an individual.
- Register the car and get number plates, then insure it before driving.
Common mistakes to avoid
- Budgeting on the invoice price. URA's value is what counts, and it is often higher.
- Buying a car just over nine years old without counting the 50 percent environmental levy.
- Importing a car that is too old. It may be refused entry, and you could lose your money.
- Using an unlicensed "agent" who collects tax money but does not pay URA. Always check your payment on URA's system.
- Leaving a car at the port or bond too long. Storage charges pile up quickly.
- Not checking the car's history. Ask for auction sheets or inspection reports where available.
Frequently asked questions
How much tax will I pay on a car in Uganda?
For a car under nine years old, the main taxes are often in the region of 55 percent of URA's customs value. For cars nine years or older, the environmental levy can push total taxes above 100 percent of the value. Ask URA for an exact assessment.
Can I import a car that is 15 years old?
No. At the time of writing, vehicles 15 years old or more from the year of manufacture cannot be imported. Check URA for any changes before you buy.
Is it cheaper to buy from a bond in Kampala?
Sometimes. Bond prices include taxes already paid and you can see the car before buying. Importing yourself can be cheaper, but you carry the risk of delays, damage and unexpected valuations.
Do I need a clearing agent?
In practice, yes. Customs declarations are lodged through licensed clearing agents. Choose one with a good track record and get a written quote.
How long does the whole process take?
It often takes around two to three months from purchase to registration, depending on shipping times, port delays and how quickly taxes are paid.
Talk to an expert
A short call before you buy can save you millions in surprise taxes or a car that cannot be registered. You can book a verified tax or customs clearing consultant on The Quick Consult to estimate your costs, check the car's age and walk you through URA's process.