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Warning to car buyers KRA raises Premio duty
premio
#1 Posted : Tuesday, August 19, 2014 10:47:47 PM
Rank: Member


Joined: 5/31/2009
Posts: 226
KRA today has amended the CRSP 1500CC PREMIO duty effective immediately is 295678 up from 264500 1800cc premio 358789 up from 283496kes 2008 premio or 2007 bad month 475900 from 375600 IF U ARE BUYING A CAR CONCLUDE THE DEAL FAST Before the market shakes
urstill1
#2 Posted : Tuesday, August 19, 2014 10:59:16 PM
Rank: User


Joined: 9/6/2013
Posts: 1,446
Location: In a house
premio wrote:
KRA today has amended the CRSP 1500CC PREMIO duty effective immediately is 295678 up from 264500 1800cc premio 358789 up from 283496kes 2008 premio or 2007 bad month 475900 from 375600 IF U ARE BUYING A CAR CONCLUDE THE DEAL FAST Before the market shakes


Are these prices showroom prices plus all taxes (here in Kenya) ama kuna mengine yanaongezwa? I would really like to know where KRA gets CRSP for premio yet Toyota Kenya doesn't stock that model(new one).
vky
#3 Posted : Wednesday, August 20, 2014 12:20:37 AM
Rank: Member


Joined: 6/17/2010
Posts: 572
I think its time stakeholders in the used car import market in Kenya came together and challenged the use of the CRSP list as a benchmark for calculating taxes for used car imports, the list is inconclusive, arbitrary, unpredictable and unreliable.

the revenue should revert to the use of invoice value as the benchmark for calculating taxes for used car imports albeit with better fraud controls as this will cure the arbitrary, inconclusive, unpredictable and unreliable nature of the CRSP list resulting in chaps paying the exact amount of taxes the should and not a penny more otherwise with the CRSP we will always feel swindled rather than that feeling of 'kulipa ushuru ni kujitegemea', if there should be a list then it should reflect the CRSP of the car when it was first registered not the CRSP seven years later that is just daylight robbery by the revenue.

we need to 'lobby up' and try to change this mode of operation because as it stands I can't see any fairness in using the price of a 2014 car to calculate taxes for a 7 year old car, fairness is using the price of a new car in 2007 to calculate its price today, you can't build a house from the roof downwards

wazua lawyers this is a career maker supreme court stuff
'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
Tebes
#4 Posted : Wednesday, August 20, 2014 12:18:51 PM
Rank: Elder


Joined: 11/26/2008
Posts: 2,097
So Jevic contract with KEBS has been terminated?

What happens with vehicles inspected by Jevic but on high seas???

Link http://www.standardmedia...h-japanese-vehicle-firm


"Never regret, if its good, its wonderful. If its bad, its experience."
urstill1
#5 Posted : Wednesday, August 20, 2014 12:43:24 PM
Rank: User


Joined: 9/6/2013
Posts: 1,446
Location: In a house
vky wrote:
I think its time stakeholders in the used car import market in Kenya came together and challenged the use of the CRSP list as a benchmark for calculating taxes for used car imports, the list is inconclusive, arbitrary, unpredictable and unreliable.

the revenue should revert to the use of invoice value as the benchmark for calculating taxes for used car imports albeit with better fraud controls as this will cure the arbitrary, inconclusive, unpredictable and unreliable nature of the CRSP list resulting in chaps paying the exact amount of taxes the should and not a penny more otherwise with the CRSP we will always feel swindled rather than that feeling of 'kulipa ushuru ni kujitegemea', if there should be a list then it should reflect the CRSP of the car when it was first registered not the CRSP seven years later that is just daylight robbery by the revenue.

we need to 'lobby up' and try to change this mode of operation because as it stands I can't see any fairness in using the price of a 2014 car to calculate taxes for a 7 year old car, fairness is using the price of a new car in 2007 to calculate its price today, you can't build a house from the roof downwards

wazua lawyers this is a career maker supreme court stuff



Makes a lot of sense. Are the CRSP Kenyan or they are foreign!! Hope you get what I mean.
Robinhood
#6 Posted : Wednesday, August 20, 2014 12:46:37 PM
Rank: Elder


Joined: 12/11/2008
Posts: 2,306
vky wrote:
I think its time stakeholders in the used car import market in Kenya came together and challenged the use of the CRSP list as a benchmark for calculating taxes for used car imports, the list is inconclusive, arbitrary, unpredictable and unreliable.

the revenue should revert to the use of invoice value as the benchmark for calculating taxes for used car imports albeit with better fraud controls as this will cure the arbitrary, inconclusive, unpredictable and unreliable nature of the CRSP list resulting in chaps paying the exact amount of taxes the should and not a penny more otherwise with the CRSP we will always feel swindled rather than that feeling of 'kulipa ushuru ni kujitegemea', if there should be a list then it should reflect the CRSP of the car when it was first registered not the CRSP seven years later that is just daylight robbery by the revenue.

we need to 'lobby up' and try to change this mode of operation because as it stands I can't see any fairness in using the price of a 2014 car to calculate taxes for a 7 year old car, fairness is using the price of a new car in 2007 to calculate its price today, you can't build a house from the roof downwards

wazua lawyers this is a career maker supreme court stuff


One guy said that taxation is like pulling feathers from a goose and a fair tax system is the one that pulls the highest number of feathers from one goose with the least amount of hissing.

KRA clearly enjoys pulling out the feathers and hearing the hissing so forget about the 'feeling swindled' thing. If this mattered to anyone, they would have revised the PAYE tax bands which have not been reviewed for a decade
Great men are not always wise, neither do the aged understand judgement...
mnjoro
#7 Posted : Wednesday, August 20, 2014 12:47:09 PM
Rank: Member


Joined: 2/21/2009
Posts: 573
vky wrote:
I think its time stakeholders in the used car import market in Kenya came together and challenged the use of the CRSP list as a benchmark for calculating taxes for used car imports, the list is inconclusive, arbitrary, unpredictable and unreliable.

the revenue should revert to the use of invoice value as the benchmark for calculating taxes for used car imports albeit with better fraud controls as this will cure the arbitrary, inconclusive, unpredictable and unreliable nature of the CRSP list resulting in chaps paying the exact amount of taxes the should and not a penny more otherwise with the CRSP we will always feel swindled rather than that feeling of 'kulipa ushuru ni kujitegemea', if there should be a list then it should reflect the CRSP of the car when it was first registered not the CRSP seven years later that is just daylight robbery by the revenue.

we need to 'lobby up' and try to change this mode of operation because as it stands I can't see any fairness in using the price of a 2014 car to calculate taxes for a 7 year old car, fairness is using the price of a new car in 2007 to calculate its price today, you can't build a house from the roof downwards

wazua lawyers this is a career maker supreme court stuff

I disagree with you with the CRSP method the playing ground is fair otherwise we will have a chaotic situation and unnecessary delays in vehicle clearance.Besides we will no longer
be able to authoritatively cost a vehicle for fear of value uplift.
urstill1
#8 Posted : Wednesday, August 20, 2014 1:34:41 PM
Rank: User


Joined: 9/6/2013
Posts: 1,446
Location: In a house
premio wrote:
KRA today has amended the CRSP 1500CC PREMIO duty effective immediately is 295678 up from 264500 1800cc premio 358789 up from 283496kes 2008 premio or 2007 bad month 475900 from 375600 IF U ARE BUYING A CAR CONCLUDE THE DEAL FAST Before the market shakes


I thought there was a list of CRSP that was effected on 1st June. Check their website for more details.
vky
#9 Posted : Wednesday, August 20, 2014 4:06:49 PM
Rank: Member


Joined: 6/17/2010
Posts: 572
mnjoro wrote:
vky wrote:
I think its time stakeholders in the used car import market in Kenya came together and challenged the use of the CRSP list as a benchmark for calculating taxes for used car imports, the list is inconclusive, arbitrary, unpredictable and unreliable.

the revenue should revert to the use of invoice value as the benchmark for calculating taxes for used car imports albeit with better fraud controls as this will cure the arbitrary, inconclusive, unpredictable and unreliable nature of the CRSP list resulting in chaps paying the exact amount of taxes the should and not a penny more otherwise with the CRSP we will always feel swindled rather than that feeling of 'kulipa ushuru ni kujitegemea', if there should be a list then it should reflect the CRSP of the car when it was first registered not the CRSP seven years later that is just daylight robbery by the revenue.

we need to 'lobby up' and try to change this mode of operation because as it stands I can't see any fairness in using the price of a 2014 car to calculate taxes for a 7 year old car, fairness is using the price of a new car in 2007 to calculate its price today, you can't build a house from the roof downwards

wazua lawyers this is a career maker supreme court stuff

I disagree with you with the CRSP method the playing ground is fair otherwise we will have a chaotic situation and unnecessary delays in vehicle clearance.Besides we will no longer
be able to authoritatively cost a vehicle for fear of value uplift.


@mnjoro, level playing field? i don't think so, that CRSP list is devoid of all the car models available in the car market and when you import a car that is not on that list they tell you to use a figure for a different car with the same engine capacity as your non listed import within the same make not caring about the correct pricing hence you pay more taxes than you would have, this has happened to me severally, there is no level field on that.
KRA should contract a reputable international valuation company to provide pre shipment valuation services akin to JEVIC in regards to KEBS this will deter fraud in invoice value declarations so that the invoice value is the customs value of the car for taxation purposes.
All the countries i have been to use invoice value for calculation of taxes before a car is allowed in, what we have in kenya is just peculiar to kenya, we need to change this because the CRSP system is just a bad poorly thought out policy
'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
mawinder
#10 Posted : Wednesday, August 20, 2014 5:07:37 PM
Rank: Elder


Joined: 4/30/2008
Posts: 6,029
vky wrote:
mnjoro wrote:
vky wrote:
I think its time stakeholders in the used car import market in Kenya came together and challenged the use of the CRSP list as a benchmark for calculating taxes for used car imports, the list is inconclusive, arbitrary, unpredictable and unreliable.

the revenue should revert to the use of invoice value as the benchmark for calculating taxes for used car imports albeit with better fraud controls as this will cure the arbitrary, inconclusive, unpredictable and unreliable nature of the CRSP list resulting in chaps paying the exact amount of taxes the should and not a penny more otherwise with the CRSP we will always feel swindled rather than that feeling of 'kulipa ushuru ni kujitegemea', if there should be a list then it should reflect the CRSP of the car when it was first registered not the CRSP seven years later that is just daylight robbery by the revenue.

we need to 'lobby up' and try to change this mode of operation because as it stands I can't see any fairness in using the price of a 2014 car to calculate taxes for a 7 year old car, fairness is using the price of a new car in 2007 to calculate its price today, you can't build a house from the roof downwards

wazua lawyers this is a career maker supreme court stuff

I disagree with you with the CRSP method the playing ground is fair otherwise we will have a chaotic situation and unnecessary delays in vehicle clearance.Besides we will no longer
be able to authoritatively cost a vehicle for fear of value uplift.


@mnjoro, level playing field? i don't think so, that CRSP list is devoid of all the car models available in the car market and when you import a car that is not on that list they tell you to use a figure for a different car with the same engine capacity as your non listed import within the same make not caring about the correct pricing hence you pay more taxes than you would have, this has happened to me severally, there is no level field on that.
KRA should contract a reputable international valuation company to provide pre shipment valuation services akin to JEVIC in regards to KEBS this will deter fraud in invoice value declarations so that the invoice value is the customs value of the car for taxation purposes.
All the countries i have been to use invoice value for calculation of taxes before a car is allowed in, what we have in kenya is just peculiar to kenya, we need to change this because the CRSP system is just a bad poorly thought out policy

Any one with Uganda taxes on motorvehicles?
mugo2of3
#11 Posted : Wednesday, August 20, 2014 5:35:20 PM
Rank: New-farer


Joined: 5/22/2014
Posts: 78
+1 @mnjoro; the CRSP was a very well thought out method of determining taxation. Otherwise we would have a very chaotic system on top of the problems that we currently face.

As for the Premio taxation, what I know is that the new CRSP matches the KE showrooms valuation. The old prices have been around for some time and those that have used them so far were lucky.

This is similar to what happened to the Corolla, the Axio is a direct replacement of the NZE with a CRSP of about 3.4M, that's a difference of around 1M.
nakujua
#12 Posted : Wednesday, August 20, 2014 9:53:58 PM
Rank: Elder


Joined: 12/17/2009
Posts: 3,583
Location: Kenya
mugo2of3 wrote:
+1 @mnjoro; the CRSP was a very well thought out method of determining taxation. Otherwise we would have a very chaotic system on top of the problems that we currently face.

As for the Premio taxation, what I know is that the new CRSP matches the KE showrooms valuation. The old prices have been around for some time and those that have used them so far were lucky.

This is similar to what happened to the Corolla, the Axio is a direct replacement of the NZE with a CRSP of about 3.4M, that's a difference of around 1M.

shida there are some lazy bums huko kra who can't update the list with all the cars that can be imported into the country, especially considering we only have one major, one minor and a couple inconsequential sources of right hand drive used vehicles in the whole world.
maka
#13 Posted : Thursday, August 21, 2014 7:58:47 AM
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Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
Just asking thought they change CRSP for all car models not just a particular brand.
possunt quia posse videntur
premio
#14 Posted : Thursday, August 21, 2014 11:09:47 AM
Rank: Member


Joined: 5/31/2009
Posts: 226
Premio taxation has always been derived from the crsp of the Toyota Camry my beef with KRA is that it shouldnt have been effective immediately to enable importers plan for the increase for example my premio hits port on 28th august i was importing for a client on an already agreed price now my new cost is +100000kes which is unfair. Effective date should have been 1st october. We are partly paying a price for devolution that isnt working as it should be
premio
#15 Posted : Thursday, August 21, 2014 11:23:03 AM
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Joined: 5/31/2009
Posts: 226
For those asking about using invoice to calculate vehicle taxation KRA uses both invoice and the crsp but picks whichever is higher. Try use a bogus agent and file entry using the actual invoice you paid for if invoice amount gives them higher amount than crsp they go for the invoice. CRSP brought about uniformity and enforced a minimum tax payable for any particular car. My only beef with KRA is changing the crsp midway without notice
premio
#16 Posted : Thursday, August 21, 2014 11:26:33 AM
Rank: Member


Joined: 5/31/2009
Posts: 226
mugo2of3 wrote:
+1 @mnjoro; the CRSP was a very well thought out method of determining taxation. Otherwise we would have a very chaotic system on top of the problems that we currently face.

As for the Premio taxation, what I know is that the new CRSP matches the KE showrooms valuation. The old prices have been around for some time and those that have used them so far were lucky.

This is similar to what happened to the Corolla, the Axio is a direct replacement of the NZE with a CRSP of about 3.4M, that's a difference of around 1M.


Suprisingly the axio 1500cc went down from 386000 to 303000 for good month 2007
vky
#17 Posted : Thursday, August 21, 2014 11:39:56 AM
Rank: Member


Joined: 6/17/2010
Posts: 572
premio wrote:
For those asking about using invoice to calculate vehicle taxation KRA uses both invoice and the crsp but picks whichever is higher. Try use a bogus agent and file entry using the actual invoice you paid for if invoice amount gives them higher amount than crsp they go for the invoice. CRSP brought about uniformity and enforced a minimum tax payable for any particular car. My only beef with KRA is changing the crsp midway without notice


I have been in such a situation on three occasions with the latest one being when I imported a car whose crsp was about 3.2m and so quoted to the buyer a price we agreed on but when the ship came shock on me the crsp had shot up to 4.75m and what made it worse this was the crsp for a better spec premium version of the make and model I was importing while mine was a grade lower spec wise, this is why that list should go, it arbitrary, unreliable, inconclusive and unpredictable, we can't have that in the market place
'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
mnjoro
#18 Posted : Thursday, August 21, 2014 11:49:35 AM
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Joined: 2/21/2009
Posts: 573
@VKY don,t be sure even by using valuers abroad will exonerate you from paying more taxes as they demand.They used to uplift even when we used to have the Clean Report of Findings them days.After all that report will always have very small writings indicating customs have the right to adjust.
Edyj
#19 Posted : Thursday, August 21, 2014 12:29:39 PM
Rank: Member


Joined: 6/15/2010
Posts: 126
Any other models that have changed?
"The trouble with not having a goal is that you can spend your life running up and down the field and never score". - Bill Copeland

vky
#20 Posted : Thursday, August 21, 2014 12:59:06 PM
Rank: Member


Joined: 6/17/2010
Posts: 572
premio wrote:
For those asking about using invoice to calculate vehicle taxation KRA uses both invoice and the crsp but picks whichever is higher. Try use a bogus agent and file entry using the actual invoice you paid for if invoice amount gives them higher amount than crsp they go for the invoice. CRSP brought about uniformity and enforced a minimum tax payable for any particular car. My only beef with KRA is changing the crsp midway without notice


on that one i dont think so, earlier this year i shipped in a 2008 renualt laguna whose customs value according to the crsp and valuation spreads by KRA was ksh 388,690 bringing the taxes payable to about 306k on the other hand the invoice value of this car was 5,895 pounds(795,825) but KRA used their crsp to calculate the taxes and not the invoice value which was higher
'One headache for famous medieval holy people was that someone might murder you to acquire your body parts for the relics trade'
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