Uganda has reinstated a 25 percent import duty on fully electric vehicles, hybrid vehicles, and electric motorcycles.
The decision, made during the review of the East African Community (EAC) Common External Tariff in May 2024, aims to support industrial development, import substitution, and sector protection.
Uganda’s commitment to transitioning to electric vehicles is highlighted by the production of electric buses by Kiira Motors Corporation for both domestic and export markets.
The country has received orders for electric vehicles from neighboring countries, showcasing the potential for growth in the electric vehicle industry in Uganda.
Although the move to increase import duty on electric cars may impact sales, it reflects a broader strategy to promote domestic manufacturing and reduce reliance on traditional gasoline-powered vehicles.
Overall, Uganda’s efforts to promote electric mobility demonstrate a shift towards sustainable transportation and environmental conservation.
Read: Uganda banks on tax exemption incentive for the e-mobility drive
Despite challenges, such as fluctuating tax policies affecting market stability, Uganda’s electric vehicle sector continues to show promise for growth and innovation.
As the country navigates the transition to electric mobility, stakeholders emphasize the importance of consistent policies to support investor confidence and market development.
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