Car dealers take KRA to court over raised taxes

Second hand cars at the Mombasa port. File photo | nmg
Second hand cars at the Mombasa port. File photo | nmg 

A legal dispute is brewing between second-hand motor vehicle importers and the Kenya Revenue Authority (KRA) over its rebased taxation that raised duty payable by dealers.

Under the Car Importers Association of Kenya, importers say in their petition at the High Court in Mombasa that in August last year, the taxman published on its portal new CRSP (Current Retail Selling Price) values which became effective from September.

Calculation of import duty to be paid for every used car model is usually based on CRSP, which is then adjusted for depreciation at the rate of 10 per cent per year.

However, the lobby argues that on January…


Source – Business Daily

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