Thabo Nkosi 
Uganda’s 2025 electric vehicle (EV) import policies bring new changes aimed at balancing growth in EV adoption with tax adjustments. Here’s what you need to know:
- Import Duty: A 25% duty now applies to EVs, hybrids, and electric motorcycles, up from 0% in 2023-2024.
- Additional Costs: Taxes include an 18% VAT, 20%-50% environmental levy (based on vehicle age), and a 1.5% infrastructure tax.
- Age Limits: Imported EVs must be 15 years old or newer, with lower levies for vehicles 8 years or younger.
- Incentives: VAT, stamp duty, and income tax exemptions are available for EVs and related components, plus tax breaks for local manufacturers meeting specific criteria.
- Registration: Vehicles require pre-import inspection, local insurance, and URA registration for road use.
The government aims to encourage EV adoption despite higher costs, targeting full electrification of public transport by 2030 and passenger vehicles by 2040. Uganda’s renewable energy mix (90%) and strict emission standards (Euro 4) align with these goals. Buyers can estimate total costs using the URA Tax Calculator and platforms like EV24.africa for streamlined imports and financing options.
EV adoption stalls as import taxes return
Uganda’s 2025 EV Import Rules
Uganda’s updated import regulations for electric vehicles (EVs), set to take effect in 2025, aim to ensure road safety and align with the country’s push for cleaner air. These rules are designed to allow only safe, roadworthy EVs into the country while supporting Uganda’s environmental goals.
Vehicle Age Limits and Emission Standards
A key feature of Uganda’s import policy is the 15-year maximum age limit for vehicles. However, the age of an EV directly affects the cost of importing it.
- EVs older than 9 years come with higher fees.
- EVs 8 years or younger are the most cost-effective to import.
Additionally, Uganda has adopted Euro 4 emission standards for imported vehicles, prioritizing models manufactured after 2016, as they are more likely to meet these requirements.
Mandatory Local Insurance
Before an imported EV can hit the road in Uganda, it must be insured through a licensed Ugandan provider. This requirement ensures compliance with legal and road safety standards.
Supporting Clean Air and Climate Goals
Uganda’s EV import regulations are a key part of its broader environmental strategy. These policies align with East Africa’s regional efforts to reduce pollution and prevent the country from becoming a dumping ground for older, high-emission vehicles.
The urgency of this shift is clear when considering the country’s environmental challenges:
- Air pollution claims 30,000 lives annually in Uganda.
- The transport sector accounts for over 10% of Uganda’s national greenhouse gas emissions.
- Uganda is ranked as Africa’s 10th most polluted nation.
To combat these issues, the government introduced the National Environment Air Quality Standards Regulations of 2024. These regulations impose strict penalties, including fines and jail time, for air pollution violations. Vehicles failing to meet Euro 4 standards will be phased out, and regular emission testing will become mandatory.
A Vision for Sustainable Transport
These import rules also align with Uganda’s National E-Mobility Strategy, which outlines ambitious goals for the future:
- By 2030: Full electrification of public transport and motorcycles.
- By 2040: Complete electrification of passenger vehicles.
By enforcing strict import standards for EVs, Uganda is paving the way for greener transportation systems. This approach not only supports global climate efforts but also positions the country to benefit from international climate funding opportunities.
These regulations provide the groundwork for understanding the tax structures and incentives discussed in the next section.
EV Import Taxes and Fees
If you’re planning to import an electric vehicle (EV) into Uganda under the 2025 regulations, understanding the tax structure is key. These rules introduce specific fees and methods for calculating the total cost of your EV import.
Import Duty Rates
Uganda now imposes a 25% import duty on fully electric vehicles, hybrid vehicles, and electric motorcycles. This is a notable shift from the previous fiscal year, when EV imports were exempt from duties. During the 2023–2024 fiscal year, this exemption contributed to a surge in EV imports, with 420 units brought into the country (403 hybrids and 17 fully electric vehicles), compared to just 26 EVs the year before.
On top of the basic import duty, additional fees apply. The Uganda Revenue Authority (URA) determines the total tax burden using an online portal and tax calculator. Depending on the vehicle type, import duties can range from 25% to 35% of the CIF (Cost, Insurance, and Freight) value.
How Tax Costs Are Calculated
Uganda calculates EV import taxes based on the CIF value, with the URA noting:
"Taxes are based on the CIF value plus an environmental levy."
Several components contribute to the total import cost:
- Value Added Tax (VAT): Charged at 18%.
- Environmental Levy: Ranges from 20% to 50%, depending on the vehicle’s age and emissions standards.
- Infrastructure Tax: A 1.5% tax to support railway development.
Vehicle age significantly impacts the environmental levy. For example, vehicles older than nine years face levies up to 50% higher than those eight years old or newer. Other fees include registration costs (UGX 200,000 to UGX 500,000), number plates (UGX 135,000), and JEVIC inspection fees, which range from $150 to $250.
| Tax/Fee Type | Rate/Range |
|---|---|
| Import Duty | 25%–35% of CIF value |
| VAT | 18% |
| Environmental Levy | 20%–50% (based on age/emissions) |
| Infrastructure Tax | 1.5% |
| Registration Fees | UGX 200,000–UGX 500,000 |
| Number Plates | UGX 135,000 |
| JEVIC Inspection | $150–250 |
In addition to these taxes, the 2024/2025 budget includes targeted exemptions aimed at encouraging EV adoption.
Other Taxes and Possible Exemptions
The 2024/2025 budget introduced several tax breaks for EVs. These include exemptions from the 18% VAT, stamp duty, and income tax. These measures reflect the government’s push to promote cleaner transportation.
Francis Twinamatsiko, assistant commissioner of the Tax Policy Department at Uganda’s Ministry of Finance Planning and Economic Development, highlighted this approach:
"We are sending a signal to the market. You will see sales of e-vehicles increase with time."
Local manufacturing companies also benefit from additional exemptions. Under the Stamp Duty (Amendment) Bill 2024, companies producing EVs, batteries, or charging equipment are exempt from the 25% duty if they meet specific criteria. These include employing at least 80% Ugandans and using 80% locally sourced raw materials. Investment thresholds apply as well: foreign companies must invest a minimum of $10 million, while local citizens need to invest $300,000 (or $150,000 for upcountry operations).
Steward Mulaabi, a tax and legal manager at Deloitte Uganda Limited, noted:
"One can argue that the government is trying to correct the negative effects of fossil fuels, by giving the option of clean energy by incentivizing supply and acquisition of e-vehicles."
Import duty exemptions also extend to electric motorcycles, hybrid cars, and electric four-wheelers.
To get an accurate estimate of your total import costs, it’s a good idea to use the URA Tax Calculator before finalizing your EV purchase. These calculations, combined with available exemptions, can help you better plan your import expenses.
Government Incentives for EV Buyers
To make electric vehicles (EVs) more accessible and encourage local production, the Ugandan government has rolled out financial incentives targeting both individual buyers and companies involved in local EV manufacturing or assembly. These measures aim to reduce costs and build a robust e-mobility sector.
Lower Excise Duty for EVs
While Uganda reinstated a 25% import duty on fully built electric vehicles, hybrids, and electric motorcycles in 2024, EVs still benefit from lower excise duty rates compared to traditional gasoline-powered vehicles. This policy helps to partially cushion the impact of higher import taxes.
The reintroduction of this duty has significantly raised costs. For example, the price of a Nissan Leaf jumped by over $13,750 – from $55,000 to $68,750. Moses Kaggwa, a government director, explained the decision:
"We were allowed to reinstate the import duty on fully built electric bikes, hybrid vehicles, and electric vehicles during the review of the East African Community (EAC) Common External Tariff in May 2024."
Incentives for Local EV Manufacturers
Local EV manufacturers enjoy a range of benefits designed to encourage domestic production. These include a ten-year income tax exemption, VAT exemptions on locally produced EVs, EV charging equipment, and related services. Manufacturers also receive excise duty exemptions for construction materials and stamp duty exemptions on specific instruments.
Additionally, import duties on production materials are significantly reduced: 0% for electric vehicle production materials and 10% for materials used in electric motorcycle production. These incentives align with Uganda’s broader national e-mobility strategy. A notable example is E-Bus Xpress, the country’s first electric bus mass transit service provider. In November 2024, the company launched seven Kayoola EVS electric buses, produced by Kiira Motors Corporation, to operate on routes like Jinja-Iganga, Jinja-Mutai, and Jinja-Mbiko. This pilot project is fully funded by the Government of Uganda through the Science, Technology, and Innovation Secretariat.
Investment Requirements for Incentives
To qualify for these incentives, foreign companies need to invest at least $10 million, while Ugandan-owned companies must invest a minimum of $300,000 ($150,000 for those operating in rural areas). Additionally, companies must employ at least 80% Ugandans and use 80% locally sourced materials. Hon. Amos Kankunda, chair of the Committee on Finance, Planning, and Economic Development, highlighted the initiative’s purpose:
"This initiative aims to encourage investment in environmentally friendly transportation solutions in Uganda."
These local content requirements are already yielding results. By 2024, locally produced electric vehicles achieved 21% local content for electric buses and up to 40% for electric motorcycles. The government has also invested over $160 million in the E-Mobility Ecosystem between 2018 and 2024, with 70% of this funding coming directly from the Government of Uganda. Meanwhile, private sector investments are projected to reach $800 million over the next five years. These efforts lay the groundwork for a growing EV market, as detailed in the next section on the import and registration process.
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How to Import and Register an EV in Uganda
Bringing an electric vehicle (EV) into Uganda involves navigating specific steps and meeting several requirements. While digital platforms have made the process more efficient, understanding the details can help you avoid unnecessary delays and ensure a smooth experience.
Before You Import: Key Preparations
Before shipping your EV, confirm that it complies with Uganda’s import regulations. Every imported vehicle must undergo a pre-inspection by the Japan Export Vehicle Inspection Center (JEVIC) to ensure it meets roadworthiness and emissions standards. Additionally, you’ll need a Tax Identification Number (TIN) for all import transactions. If you don’t have one yet, register for it through the Uganda Revenue Authority (URA).
All required documents must be uploaded to the URA’s online customs management system. It’s also wise to work with a dependable shipping agent or freight forwarder who understands Uganda’s import procedures. Most vehicles are shipped through Mombasa Port and cleared at either the Malaba or Busia border posts. Once your paperwork is ready, you’ll need to settle taxes and arrange insurance.
Taxes and Insurance: What to Expect
When your EV arrives in Uganda, you’ll need to clear it through customs and pay the applicable taxes using the URA’s online system. The tax breakdown includes:
- Import duty: Typically 25% to 35% of the vehicle’s Cost, Insurance, and Freight (CIF) value.
- Value Added Tax (VAT): Charged at 18%.
- Environmental Levy: Ranges from 20% to 50%, depending on the vehicle’s age and emissions.
These taxes are calculated based on the CIF value, including the Environmental Levy. To plan ahead, you can use the URA Tax Calculator to estimate your total costs before finalizing the import.
Starting February 1, 2025, all importers are required to insure their cargo with local companies. Local marine insurance costs 0.3% of the insured value, and failing to comply results in a 1% penalty. With taxes paid and insurance secured, you’re ready for the final steps.
Inspection and Registration: The Final Steps
Once taxes are cleared, your EV must be registered with the URA to obtain the legal documents needed for road use. After registration, you’ll receive number plates and a logbook, which serve as proof of ownership and authorization to drive the vehicle in Uganda. Since your EV should already have a valid JEVIC inspection certificate, this step mainly ensures that all import requirements have been fulfilled.
The registration process is managed through the URA’s digital platform, which speeds up processing and allows you to track your application status.
With your EV fully registered and documented, you’ve met all of Uganda’s import and registration requirements for 2025. From here, you can explore tools and services like those offered by EV24.africa to simplify future EV transactions and become part of Uganda’s growing electric vehicle community.
Using EV24.africa for EV Imports
EV24.africa makes importing electric vehicles (EVs) into Uganda a much smoother experience. By connecting buyers with a wide range of EVs from around the globe, the platform simplifies the entire process, from vehicle selection to delivery.
Platform Features and Services
One of the standout features of EV24.africa is its transparency. The platform clearly outlines the total landed cost of each vehicle – including the purchase price, shipping fees, duties, and taxes – so buyers know exactly what to expect financially.
To make EV ownership more accessible, EV24.africa offers financing options through its financial partners. Buyers can choose from installment plans, lease-to-own agreements, and customized loan products, allowing them to spread out payments over time.
The platform also handles logistics with comprehensive delivery options. Buyers can select between roll-on/roll-off (RoRo) or container shipping, and choose either port-to-port or door-to-door delivery. For customers in Uganda, vehicles are typically shipped via the Port of Mombasa in Kenya and then transported inland.
EV24.africa goes a step further by managing customs clearance, registration, and tax processing. Using international commercial terms (Incoterms), the platform offers Delivered Duty Paid (DDP) services, ensuring a hassle-free experience. Their team handles all the paperwork, customs procedures, and tax calculations to comply with Uganda’s 2025 import regulations.
Listing Plans and Costs
The platform caters to different types of sellers with three listing plans:
| Plan Type | Cost | Best For | Key Features |
|---|---|---|---|
| Basic Listing | Free | Individual sellers | Single listing, visible to all users |
| Premium Listing | Custom pricing | Enhanced visibility | Priority placement, detailed analytics |
| Dealer Plan | Custom pricing | Businesses and dealers | Bulk listings, dealership branding, verification required |
The Basic Listing is perfect for individuals selling a single vehicle, offering standard visibility. The Premium Listing provides priority placement alongside marketing tools and analytics. For dealerships, the Dealer Plan includes bulk listing options, branding opportunities, and dedicated account management.
These flexible listing options complement the platform’s delivery and support services, making it a one-stop shop for EV imports.
Support for Uganda-Based Buyers
EV24.africa has a dedicated local team in Uganda to address the specific needs of its customers. Support is available through phone, email, and live chat, with staff who are well-informed about Uganda’s import regulations, tax requirements, and registration processes.
The platform doesn’t just stop at paperwork. It also helps buyers navigate Uganda’s evolving EV policies by offering updates on regulatory changes, expert consultations, and guidance on local insurance options. This ensures buyers are well-prepared for the entire import process.
To further assist Uganda-based buyers, EV24.africa provides flexible payment options, accepting both US dollars and Ugandan shillings. The platform also offers advice on local charging infrastructure and works with regional experts to ensure compliance with all regulations.
For detailed pricing and tax estimates based on Uganda’s current import policies, buyers can contact EV24.africa directly. Their end-to-end support – from vehicle selection to final registration and delivery – makes the transition to EV ownership seamless.
Key Points: Uganda’s 2025 EV Import Policies
Uganda’s 2025 electric vehicle (EV) import policies present a structured plan that blends standard import procedures with incentives designed to boost EV adoption. Here’s a breakdown of the most important aspects of these policies:
Tax structure is a key factor in determining import costs. Import duty is set between 25% and 35% of the CIF (Cost, Insurance, and Freight) value, with an additional Environmental Levy ranging from 20% to 50%, depending on the vehicle’s age and emissions. Importers should also budget around $150–250 for JEVIC (Japan Export Vehicle Inspection Center) inspection fees.
The government’s incentive program offers significant financial relief for EV importers. Electric and hybrid vehicles benefit from reduced excise duty, and exemptions are available for VAT, stamp duty, and income tax on EVs, batteries, charging equipment, and vehicle bodies. Import duty exemptions specifically cover electric motorcycles, hybrid cars, and four-wheelers.
Registration requirements are simple and managed through the Uganda Revenue Authority (URA). These steps are part of Uganda’s broader effort to meet its environmental goals.
This policy framework demonstrates Uganda’s commitment to tackling environmental issues. With Kampala’s air pollution levels measured at nine times higher than the World Health Organization’s recommended limits and only 44 fully electric four-wheelers currently registered in the country, these policies aim to accelerate the shift toward cleaner transportation.
"The procurement of the charging systems is aligned with Uganda’s goal to decarbonise the transport industry", said Irene Batebe, Permanent Secretary in Uganda’s Ministry of Energy.
For importers, focusing on newer vehicles can help minimize Environmental Levy costs. Taking advantage of available tax exemptions and ensuring all documentation is in order will streamline the process. With these incentives and simplified registration procedures, 2025 presents a promising opportunity for bringing EVs into Uganda.
FAQs
What are the steps to import and register an electric vehicle in Uganda under the 2025 regulations?
To bring an electric vehicle (EV) into Uganda and register it under the 2025 regulations, here’s what you need to know:
- Check compliance with Uganda’s import rules: Your EV must be less than 15 years old and pass the required inspection to qualify for importation.
- Gather all necessary paperwork: This includes the bill of lading, commercial invoice, certificate of origin, and an import permit.
- Settle taxes and fees: Be prepared to pay import duty (around 25%), VAT, and registration fees.
- Handle customs clearance and registration: Work with the Uganda Revenue Authority (URA) to clear customs and register your vehicle to get license plates.
Stick to these steps, and you’ll be ready to drive your EV legally in Uganda under the 2025 policies.
How do environmental levies on EV imports in Uganda differ by vehicle age, and how can I reduce these fees?
In Uganda, environmental levies are noticeably higher for electric vehicles (EVs) that are more than 9 years old. To minimize these charges, it’s a smart move to import newer EVs – those under 9 years old – which may qualify for reduced levies or even exemptions.
On top of that, Uganda offers full exemptions from environmental levies for both electric and hybrid vehicles. Choosing these types of vehicles not only helps you cut down on import costs but also ensures you meet the country’s regulatory standards.
What incentives are available for electric vehicle manufacturers in Uganda, and what are the eligibility requirements?
The Ugandan government has introduced a range of incentives aimed at boosting local electric vehicle (EV) manufacturing. These incentives often include tax breaks on imported components, lower registration fees, and financial support like grants or subsidies tied to green energy initiatives. There’s also a focus on infrastructure, with some programs assisting in the development of charging stations.
To take advantage of these benefits, manufacturers usually need to meet specific criteria. These might involve using a certain percentage of locally sourced materials, complying with environmental regulations, and registering with the appropriate government agencies. Since eligibility requirements can differ, it’s a good idea to review Uganda’s current EV policy guidelines or reach out to the relevant regulatory bodies for the most accurate and up-to-date details.
