Parliament has approved amendments to the Stamp Duty Bill, that will see companies involved in electric vehicle (EV) manufacturing not pay Stamp Duty in the 2024/2025 financial year.
The amendments, passed on May 6, 2024, mark a significant shift in Uganda’s automotive industry landscape. To qualify for the exemption however, the companies shall have the capacity to use at least 80 percent of the locally produced raw materials, subject to availability.
The Chairperson of the Committee on Finance, Hon. Amos Kankunda, who presented the committee report on the Bill, said that the company is required to have a minimum investment capital of US$10 million in case of a foreigner; US$300,000 in case of a citizen; or US$150,000 in case of a citizen who invests up country.
He emphasized the importance of attracting investment in environmentally friendly technologies and creating opportunities for local workforce participation.
Despite some dissenting voices, including concerns raised by the Shadow Minister of Finance, Hon. Ibrahim Ssemujju, regarding the effectiveness of tax exemptions, the majority of legislators rallied behind the initiative. They see it as a strategic move to stimulate economic growth, drive innovation, and position Uganda as a regional leader in green technology.
