The National Transport and Safety Authority (NTSA) has initiated talks with the Kenya Revenue Authority (KRA) to clear used cars from the Port of Mombasa without number plates following a supply failure of the number plates at the Kamiti Maximum Prison.
In its proposal, the transport regulator wants the tax man to allow importers to use the third identifier sticker for clearance from the port.
“I have asked the director-general to call the Kenya Revenue Authority (KRA) so that the vehicles can be released using the third identifier sticker as their owners await their number plates,” said Ms. Githinji
The move follows the increased number of second-hand vehicles that have been detained at the container freights stations (CFS) due to supply hitch at the maximum-security prison which manufactures the number plates. Information from the prison center indicates a lack of raw materials used to make the number plates amidst an increase of demand for car registration
The over 4,000 imported used car owners have been forced to pay for Sh3,000 daily charged as a result of delayed clearance. The car owners have decried the shortage saying it has interfered with their plans to service loans even as they incur unbudgeted storage charges.
The law requires all imported used cars to possess number plates before leaving the port to arrest tax evasion through dumping in the local market, vehicles that are meant for Uganda, for example.
NTSA, however, believes that the stickers can as well be used for clearance to ease backlog even as the prisons department sort out the supply hitch.
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