Ugandan will no longer be able to import cars older than 15 years following a legislation passed by its parliament.
The policy will help combat environmental pollution and reduce road accidents, blamed on older cars.
The issue of environmental pollution and road safety has dominated major public discourse in the East African nation.
This week, Uganda observed three days of national mourning after a bus accident killed more than 20 people last week.
Uganda’s capital Kampala, has been named as one of the most-polluted cities in Africa.
However, car importers are warning that a ban on old cars will lead to job losses. To encourage Ugandans to buy newer cars, parliamentarians removed an environmental levy on cars below eight years of age.
A new car, which is often expensive, incurs taxes of more than 50%.
Last year, Ugandans imported an average of 2,500 used cars per month.
In May 2016, the MPs rejected a proposal by the then Shadow Finance minister Geoffrey Ekanya, who in a minority report proposed an outright ban on used cars and a reduction of the taxes on new ones.