Kenya Revenue Authority is set to auction 438 cars by May 15 in the event that the importers will fail to have cleared them before then.
The cars which include high-end brands the likes of Land Rover Cruiser V8, Range Rover, Land Cruiser VX and BMW X5 are among the slated for auction.
According to several importers, the price of many models of vehicles has skyrocketed after the last monthly valuation review by Kenya Revenue Authority something which has led them to abandon the cars at the port.
“Most of us clear the cars as we sell and when the clearance bills shoot up suddenly, it makes no business sense even to try marketing the car since no one will buy. It is only in Kenya where you buy a used car from Japan, and then its clearance cost almost matches the buying price.” Said a retailer.
A report by KRA indicates that import duty varies with the model based on the CRSP, which is adjusted at 10 percent depreciation rate a year.
“The CRSP captures the estimated price of a brand-new version of a vehicle an importer purchase. The KRA then relies on the estimated price to calculate the various duties and levies charged on imported units.
The levies include import duty, excise tax, Value Added Tax, import license (IDF) and Railway Development Levy. Importers are also required to pay a registration fee, port charges and a Maritime Levy, all of which in most cases vary according to the vehicle configuration (left- or right-hand drive, the fuel it uses as well as its mode of transmission) (manual or automatic) or any other enhancements,” says the report.
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