Goods news have reached merchant Trucking import cargo and passengers as well as the owners of transport agencies as the Ministry of Finance and Economic Planning (MINECOFIN) makes their life easier after reducing taxes on some cars.
These transport business holders have reacted that such tax reduction will boost their businesses as public transport is also expected to be quiet easier than before so people will now be able to afford to travel by cars at ease.
When Claver Gatete, the Minister of Finance and Economic Planning, announced the 2017/18 budget plan before the parliament, he said that the machine tractors used in road construction will be taxed at 0% while they previously paying 10%.
Trucks with the capacity to carry between 5 and 20 tonnes will pay a total tax of 10% comparing to 20% previously while cars that have capacity of carrying more than 20 tonnes will charged 0% tax comparing to 25% they were paying before the reforms were made.
Buses with the capacity to carry 25 and 50 passengers will pay taxes at 10% from 25% that they were previously while buses capable of carrying over 50 passengers will not be charged the taxes while they were supposed to pay taxes at 25% previously.
Doing the transport business now seems to be easier since the tax cuts on transporting vehicles were announced to a large extent and thus be easier for those who want to buy cars.
The Finance Ministry also announced that some products imported from the East African Community have also seen the tax tariffs reduced at one point and waived at the other point in order to boost local industry development. They include rice, sugar and wheat.