car importers say new tax by KRA punitive

Car importers have written to the Kenya Revenue Authority (KRA) demanding suspension of the new Current Retail Selling Price (CRSP) that could lead to increase in cost of second hand vehicles.
In a letter dated January 30, Car Importers Association of Kenya (CIAK) chairman Peter Otieno said KRA took the decision without involving them as players.
The new tax regime, the association said, should not be implemented until pending queries are resolved.
The letter is directed to commissioner in-charge of the Customs and Border Control department and copied to the KRA commissioner general.
The new taxes will see high end models like Toyota Land Cruiser URJ201/202-GNT V8 5663cc retail at Sh21.6 million and attracting a duty of Sh2.3 million.
In 2017 the same model was selling at Sh17.9 million and attracting a Sh1.9 million, which is a 20 percent increase.
Lexus R450 3500cc will now retail at Sh11.5 million and will attracting a duty of Sh1.2 million.
Last year the same model retailed at Sh6.9 million and attracted a duty of Sh768, 127, an increase of 63 percent.
Honda CRV RM4 (2400) cc will now retail at Sh7.3 million attracting a duty of Sh801,719, a 25 percent increase from last year. In 2017 the same model retailed at Sh5.8 million attracting a duty of Sh641, 296.

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