URA says the details of the car were misrepresented and consequently, the car was under-valued.
The Uganda Revenue Authority-URA has said that the motor vehicle
that was reportedly donated to NUP President Robert Kyagulanyi was cleared in
Last week, Kyagulanyi told his supporters that the car, a Toyota
Land Cruiser V8 was acquired by local and foreign-based supporters after a
fundraising drive, was armoured. This was after the URA had already cleared,
registered and released it to him.
Now, URA says the details of the car were misrepresented and
consequently, the car was under-valued.
"An enquiry has been conducted into the circumstances under
which motor vehicle Toyota Land Cruiser Registration Number UBJ 667F was
declared to customs vide reference UGCWH C54 dated 12th January 2021 was
cleared and subsequently registered," says a letter signed by URA
Commissioner for Customs, Abel Kagumire.
The URA says that their findings reveal that among other things,
the fact that it was an armoured car was not declared during the assessment.
"The above-mentioned motor vehicle was declared to customs as
an ordinary motor vehicle, instead of an armoured motor vehicle, the
implication of which is that the vehicle was under-valued at 157,925,502/=,"
This would mean the tax of about 88 Million Shillings that
Kyagulanyi was charged was less than what he would have paid, hence the
decision to recall the car.
"Under Section 236 (d) of the East African Community Customs
Management Act, 2004, as amended, you are required to voluntarily bring the
above-mentioned motor vehicle to the URA Nakawa Inland Port to Undergo a
re-verification process not later than 3.00 pm of 26th February 2021, without
fail," says the letter dated 26th February.
The information shows that the car was brought into the country by
a Kenyan national Fauz Khalid, bearing license registration plate number KCY
550X, on November 5th 2020. Khalid handed it over to clearing firm Real-Time
Global Cargo Handlers, and after it was inspected by URA officials, it was
cleared and registered and 12th January.
The recall of the vehicle did not go down well with Kyagulanyi.
His lawyers, Wameli and Co Advocates say URA is acting outside the laws.
"Your decision to recall our client's motor vehicle is not
only arbitrary and without legal basis, but it is also a threat to our client's
right to property and privacy," they wrote to URA.
"This is, therefore, to demand that you immediately withdraw your decision
to recall our client's motor vehicle, as long as such a decision is arbitrary
and unsupported by any law," the letter concludes.
URA Acting Assistant Commissioner Public and Corporate Affairs,
Ian Rumanyika says there's nothing new or extraordinary that URA is doing by
recalling the car.
"We are currently investigating the issue under our usual
"Re-Verification is a service that we offer it is a normal process,"
An internet search shows that a new Toyota
Land-Cruiser Vehicle costs from $85,000 (Shs 310m), while an armoured one goes
for between S$395,000 and $450,000 (Shs 1.4 billion to 1.65 billion), depending
on the features.