KRA introduces new taxes on imported second-hand vehicles

Importers of second-hand vehicles in the country have been dealt a major blow after the government imposed new taxes on the cars.

The Kenya Revenue Authority (KRA) has introduced a new depreciation schedule which has capped the maximum depreciation rate at 65% of the value of the vehicle, from 70% previously. 

In a statement, KRA's Acting Commissioner for the Customs and Border Control department Pamela Ohago requested all the State agency’s staff to adopt the valuation schedule effective 1st September this year.

Ms. Ohaga noted that the directive follows an order made during an engagement forum with stakeholders at the Port of Mombasa on July 29, which required the taxman to harmonise valuation parameters of used motor vehicle units.