Uganda’s Revenue Authority (URA) has upgraded its e-tax system to enable the registration of vehicles.

Henry Saka, URA acting commissioner for domestic taxes, said this move could halt scams that have deprived the organisation of valuable income.

He also said the move could give a buyer, importer or tax body, the opportunity to ensure that the vehicles in transaction meet all the tax requirements spelt out by the the law.

“It will dramatically reduce on cases of disappearing files since every transaction will be online,” he explained.

"For those who want to change ownership of the vehicle they will have to provide data on the previous log book and the serial numbers for the cars registration plate to see if it corresponds with the data in the URA systems,” he added.

The e-tax registration system, which was introduced four years ago, was previously hit by two major frauds scams, with one scam involving URA staff and outsiders.

The new system, which took effect on Monday, provides for two different registration categories namely vehicles earlier registered and those just imported into the country.