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Cost of Importing a Car to Kenya

Incase you are planning to import a car from Japan, China or any other place, the big concern is the cost. There are two types of cost you may incur, the first cost is the CIF which basically covers the price of car and importation fee to Mombasa port. The second type of cost is on taxation and importation duty. This is the largest cost of Importing because it can be more than 30 percent of the actual cost of the car.

Kenya Revenue Authority uses current retail selling price as standard price on which tax payable is based on. Other factors such as the model, make and engine capacity of the car will contribute to tax computation. The custom value is arrived after lessing a depreciation of ten percent on straight line base from the actual cost of the car. Taking example that actual cost of Toyota Hilux 2015 is four million, the Custom value will be the actual cost less depreciation for six year upto now which sixty percent. So in short the remaining forty percent is what is taken as tax base.

The customs value of 1.6 million will then be subjected to several charge such as Importduty 25%, Excise duty 20% and 16% as value added tax. According to our example, importation of the car will averagely cost more than 520000. The older cars are cheap to import than new cars and that's why no one is accepted to import a car of more than 8 year from date of manufacturing.

Content created and supplied by: djflykicks (via Opera News )

China Japan Kenya Kenya Revenue Authority Toyota Hilux


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