URA cancels licenses of 18 car dealers

The Uganda Revenue Authority (URA) has revoked licenses of 18 clearing firms out of the 41 that were suspended following the on-going motor vehicle fraud investigations.

5 of the firms were cleared after they presented documents indicating they were not involved in the fraudulent dealings that saw Government lose sh2.3b in tax evasion while 18 remained suspended.

Addressing the media at the URA offices at Crested Towers, the Commissioner of Customs Dickson Kateshumbwa said they had already recovered sh564m out of the sh2.3b from 287 cars that were being sought over tax evasion. 

Some of these cars included the fancy and flamboyant Range Rovers, Land Cruisers, BMW and Mark X's considered state of art.

He admitted that 5 of their staff were being investigated and would be prosecuted if found to be involved in the fraud. He however, declined to give names of the revoked firms saying the list would be published by end of the week.

"We need partners who are tax compliant. Ugandans need services, while the Government needs to collect the taxes and when you fail in your tax duty we cannot maintain our relationship with you," Kateshumbwa said.

Kateshumbwa urged all those whose cars were named to go to URA to avoid embarrassment. "The financial year is ending and we must recover every penny for us to beat our targets. Therefore we shall not have any mercy. If your car was mentioned come forward now and we find a way forward. No car that has been named will be allowed to cross the border. Our officers are alert," he said.

He said that URA had asked the firms implicated in the fraud to produce the agents and the cars that had defaulted but some of the firms chose not to respond even after they had received the communication and that was why their licenses were revoked.