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Warning to car buyers KRA raises Premio duty
magic huru
#21 Posted : Thursday, August 21, 2014 2:12:20 PM
Rank: New-farer


Joined: 11/28/2013
Posts: 16
vky wrote:
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


@Premio, I totally agree with you. KRA uses the higher of the two;Invoice or Customs value. Of course KRA has to maximize on its revenue collection so its highly unlikely they would at any one time settle for an amount that would yield a lower tax value. Anyone whose import tax was computed based on the lower of the two must have escaped by a whisker probably on technicality or a short hand deal.
Secondly, @Vky,to the best of my understanding,KRA does not generate its own CRSP but relies on the Prices provided to it by the local franchise such as Toyota Kenya,DT Dobie on a periodic basis
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