1. What is URA Motor Vehicle Import Tax?

The Uganda Revenue Authority (URA) motor vehicle import tax consists of customs duty, value-added tax (VAT), and environmental levy. These taxes are calculated based on the Cost, Insurance, and Freight (CIF) value of the vehicle plus customs value.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value in UGX
• \( Customs\ Value \) — Additional customs valuation in UGX
• \( Duty\ Rate \) — Percentage duty rate (typically 25%)
• \( VAT \) — 18% of (CIF + Customs Value + Duty)
• \( Environmental\ Levy \) — Fixed environmental fee in UGX

3. Importance of Accurate Calculation

Details: Proper tax calculation ensures compliance with URA regulations, prevents underpayment penalties, and helps with financial planning for vehicle imports.

4. Using the Calculator

Tips: Enter all values in UGX. Default duty rate is 25% and VAT is 18%. Environmental levy varies by vehicle type and engine size.

5. Frequently Asked Questions (FAQ)

Q1: What is CIF value?
A: CIF stands for Cost, Insurance, and Freight - the price paid for the vehicle plus insurance and shipping costs to Uganda.

Q2: Why is VAT calculated after duty?
A: VAT is applied to the total landed cost (CIF + customs value + duty) as per URA regulations.

Q3: How is environmental levy determined?
A: The levy depends on vehicle type, age, and engine capacity. Check URA's latest schedule for exact amounts.

Q4: Are there exemptions or reductions?
A: Some vehicles (e.g., ambulances, government imports) may qualify for exemptions. Diplomatic vehicles have special rates.

Q5: How current are these rates?
A: This calculator uses 2025 estimated rates. Always verify with URA as rates may change.