Govt Moves to Ban Importation of Cars Older Than 13 Years Government is tightening motor vehicle import rules by reducing the age limit to 13 years and introducing higher environmental levies on older cars, in a bid to curb pollution, cut foreign exchange pressures, and boost domestic revenue under the 2026/27 fiscal policy framework.

Government is proposing sweeping changes to motor vehicle importation rules under the Traffic and Road Safety Act, as part of broader reforms contained in the Revenue Enhancement and Compliance Measures for the 2026/27 financial year.

The measures propose a reduction in the allowable age of imported vehicles from 15 years to 13 years, a move aimed at phasing out older, less efficient cars and encouraging the uptake of newer, environmentally friendly models.

In tandem with the revised age limit, government is proposing a revision in the Environmental Levy targeting vehicles aged nine years and above.

Under the new structure, 13-year-old vehicles will attract the highest levy of 50%, followed by 12 years (40%), 11 years (30%), 10 years (20%), and nine years (10%).

Vehicles below nine years old will be exempt. The proposed levies are a shift away from the 20% band that government currently charges. The levies are also likely to change the structure of vehicle pricing in Uganda.

However, government argues that older vehicles place a growing economic and environmental burden on the country by requiring frequent repairs and spare parts, which increases demand for foreign exchange, while also contributing to higher emissions and poor fuel efficiency.

By discouraging their importation, government aims to reduce pollution, improve fleet quality, and contain pressure on external reserves.

The measures, outlined in the Revenue Enhancement and Compliance framework, are also expected to boost domestic revenue by UGX 19 billion, while maintaining existing exemptions under the current Traffic and Road Safety Act.

The proposed reforms mark a significant shift from a policy first introduced in the early 2000s, when Uganda set the vehicle import age limit at 15 years.

At the time, the priority was to strike a balance between road safety and affordability in a smaller economy with low vehicle ownership.

However, that threshold has increasingly come under pressure as the vehicle population expanded.

The 15-year limit continued to allow in cars that are considered old by global standards, many of which contribute to urban pollution, frequent breakdowns, and rising demand for imported spare parts.

While successive budgets have attempted to address these challenges through higher taxes and environmental levies on older vehicles, the core age limit itself has remained largely unchanged until now.

The 2026/27 financial year proposal represents the most direct overhaul of that framework, signaling a transition from a policy focused on basic roadworthiness and affordability to one that prioritises environmental sustainability, fuel efficiency, and economic resilience.

The new approach not only restricts the importation of older vehicles but also uses taxation to discourage near-threshold imports, nudging buyers toward newer models.

The reforms highlight a broader policy shift, one that reflects changing economic realities and growing pressure to address pollution, energy efficiency, and long-term fiscal stability in Uganda’s transport sector.