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Flat Rate Excise Duty On Used Motor Vehicles
Rank: Member Joined: 2/8/2007 Posts: 625 Location: Nairobi
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Mr Rotich has told us that we will pay Ksh 150,000 to 200,000 excise duty on used motor vehicle or mitumba as they are usually referred to instead of the current 20% on customs value. How will this work ? I think the poor man who can only afford the small cheaper units like Vitz or Nissan Note will be hit very hard coz duty will almost double!! When does it take effect?  The future belongs to those who believe in the beauty of their dreams.
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Rank: Member Joined: 8/5/2011 Posts: 125
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There is a concept called "whichever is higher". I think that the excise duty will be determined by the figure that is higher between the percentage and the flat rate.
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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kiwaru wrote:There is a concept called "whichever is higher". I think that the excise duty will be determined by the figure that is higher between the percentage and the flat rate. Nope! You pay 200k in addition to duty, VAT etc. even if your car cost 2 bob! Hujuma, hujuma, hujuma!!! Rotich has done his maths and ensured MOST Kenyans will be losers because they import cars that cost less than a million bob! Link: Tax, tax, tax!!!Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 2/8/2007 Posts: 625 Location: Nairobi
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MaichBlack wrote:kiwaru wrote:There is a concept called "whichever is higher". I think that the excise duty will be determined by the figure that is higher between the percentage and the flat rate. Nope! You pay 200k in addition to duty, VAT etc. even if your car cost 2 bob! Hujuma, hujuma, hujuma!!! Rotich has done his maths and ensured MOST Kenyans will be losers because they import cars that cost less than a million bob! Link: Tax, tax, tax!!! who knows how it will work? The other one was rather easy to understand. If the customs value of your car was say Ksh 1000,000/= would be Ksh 250,000 i.e. 20% of the value plus duty of 25%. that simple.... The future belongs to those who believe in the beauty of their dreams.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Nobby wrote:MaichBlack wrote:kiwaru wrote:There is a concept called "whichever is higher". I think that the excise duty will be determined by the figure that is higher between the percentage and the flat rate. Nope! You pay 200k in addition to duty, VAT etc. even if your car cost 2 bob! Hujuma, hujuma, hujuma!!! Rotich has done his maths and ensured MOST Kenyans will be losers because they import cars that cost less than a million bob! Link: Tax, tax, tax!!! who knows how it will work? The other one was rather easy to understand. If the customs value of your car was say Ksh 1000,000/= would be Ksh 250,000 i.e. 20% of the value plus duty of 25%. that simple.... Nothing is hard once you get the concept! It's 200k as excise duty for vehicles of over 3yrs old. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Parliament will be needed for approval and since it favours "masonko" you can be sure it will go through. The opposite of courage is not cowardice, it's conformity.
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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jerry wrote:Parliament will be needed for approval and since it favours "masonko" you can be sure it will go through. A fellow importing a 2014 Range Rover pays 150k while the one importing a 2008 Vitz pays 200k!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Elder Joined: 3/18/2011 Posts: 12,069 Location: Kianjokoma
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Govt wants taxes Govt wants to control mitumba imports Nice plan hittin both birds
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Rank: Elder Joined: 10/9/2008 Posts: 5,389
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MaichBlack wrote:jerry wrote:Parliament will be needed for approval and since it favours "masonko" you can be sure it will go through. A fellow importing a 2014 Range Rover pays 150k while the one importing a 2008 Vitz pays 200k!!! Aren't you the same people who have been complaining that the govt punishes people who import newer less polluting cars?
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Rank: Member Joined: 5/31/2009 Posts: 226
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Tax of a car comprises of excise duty 20% import duty 25% and vat 16%. Of the customs value. A 2008/5 allion has an excise duty of 82345. That will rise to 200k and will impact on vat so on average the allion will cost 135k more. A 2008 Toyota Rav4 with an excise duty of 193000 will rise by a meagre 7000 so basicaly its punishing the poor the vitz demio axio allion premio and all cars currently costing below 1.5m will rise by btn 100-150k whereas the Toyota Landcruiser prado the mheshimiwas drive will be untouched
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Rank: Member Joined: 5/31/2009 Posts: 226
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if it was in Canada where every single coin goes to good use i wouldnt mind buying a vitz at 800k. Now in Kenya over 70% will go to line up pockets of fat cat contractors and briefcase suppliers . Why do u wantto make hard for the poor milk supplier buying a probox to transport his milk to better markets. The buyer unemployed graduate venturing into the matatu bussiness with a used nissan vannette purchased through and expensive loan and leave the rich karen residents who parks 4 luxury cars for personal use to pay the same duty.
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Rank: New-farer Joined: 9/25/2012 Posts: 58 Location: kenia
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Do kenya make their own vehicles or their import even spare parts. Toe the line
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Rank: Elder Joined: 6/2/2011 Posts: 4,818 Location: -1.2107, 36.8831
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On this, am 100% with Rotich even though my plans of upgrading my jalopy are in high gear! Traffic jam cost me an hour sleep daily during weekday. Receive with simplicity everything that happens to you.” ― Rashi
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Rank: Elder Joined: 12/17/2009 Posts: 3,583 Location: Kenya
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Hapa nakubaliana na @premio, those who can afford 6 7 800k can definitely afford to top up 100 or 200k albeit with a slight delay. Even if it passes I bet there won't be any reduction in the number of imports.
shida ni the cash won't make a difference in the states coffers, it might as well end up making a personal difference elsewhere.
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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premio wrote:Tax of a car comprises of excise duty 20% import duty 25% and vat 16%. Of the customs value. A 2008/5 allion has an excise duty of 82345. That will rise to 200k and will impact on vat so on average the allion will cost 135k more. A 2008 Toyota Rav4 with an excise duty of 193000 will rise by a meagre 7000 so basicaly its punishing the poor the vitz demio axio allion premio and all cars currently costing below 1.5m will rise by btn 100-150k whereas the Toyota Landcruiser prado the mheshimiwas drive will be untouched @Premio - The exercise duty for Prados, Mercedes, Range Rovers etc. will actually REDUCE!!! If a mheshimiwa/cowboy contractor bought a less than 3 year old 5 million car, they would have paid a million bob in exercise duty. Now they will pay 150k!!! The poor will be paying taxes for the rich!!! Even republicans (In the US) would be impressed!!! Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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MaichBlack wrote:premio wrote:Tax of a car comprises of excise duty 20% import duty 25% and vat 16%. Of the customs value. A 2008/5 allion has an excise duty of 82345. That will rise to 200k and will impact on vat so on average the allion will cost 135k more. A 2008 Toyota Rav4 with an excise duty of 193000 will rise by a meagre 7000 so basicaly its punishing the poor the vitz demio axio allion premio and all cars currently costing below 1.5m will rise by btn 100-150k whereas the Toyota Landcruiser prado the mheshimiwas drive will be untouched @Premio - The exercise duty for Prados, Mercedes, Range Rovers etc. will actually REDUCE!!! If a mheshimiwa/cowboy contractor bought a less than 3 year old 5 million car, they would have paid a million bob in exercise duty. Now they will pay 150k!!! The poor will be paying taxes for the rich!!! Even republicans (In the US) would be impressed!!! My take. The excise duty amount will be the higher of the 200k,or the 20% of customs value, whichever would be higher. I don't think one importing a Maserati would pay the same excise duty, as someone buying the Indian Nano,if the cars were of the same age. With the taxman, it's always the higher of the two. Minimum excise duty payable would 200k but there won't be maximum. The higher the value, the higher the amount.
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Rank: Member Joined: 1/27/2012 Posts: 851 Location: Nairobi
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MaichBlack wrote:premio wrote:Tax of a car comprises of excise duty 20% import duty 25% and vat 16%. Of the customs value. A 2008/5 allion has an excise duty of 82345. That will rise to 200k and will impact on vat so on average the allion will cost 135k more. A 2008 Toyota Rav4 with an excise duty of 193000 will rise by a meagre 7000 so basicaly its punishing the poor the vitz demio axio allion premio and all cars currently costing below 1.5m will rise by btn 100-150k whereas the Toyota Landcruiser prado the mheshimiwas drive will be untouched @Premio - The exercise duty for Prados, Mercedes, Range Rovers etc. will actually REDUCE!!! If a mheshimiwa/cowboy contractor bought a less than 3 year old 5 million car, they would have paid a million bob in exercise duty. Now they will pay 150k!!! The poor will be paying taxes for the rich!!! Even republicans (In the US) would be impressed!!! Deleted!
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Rank: Elder Joined: 7/22/2009 Posts: 7,451
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mkeiy wrote:MaichBlack wrote:premio wrote:Tax of a car comprises of excise duty 20% import duty 25% and vat 16%. Of the customs value. A 2008/5 allion has an excise duty of 82345. That will rise to 200k and will impact on vat so on average the allion will cost 135k more. A 2008 Toyota Rav4 with an excise duty of 193000 will rise by a meagre 7000 so basicaly its punishing the poor the vitz demio axio allion premio and all cars currently costing below 1.5m will rise by btn 100-150k whereas the Toyota Landcruiser prado the mheshimiwas drive will be untouched @Premio - The exercise duty for Prados, Mercedes, Range Rovers etc. will actually REDUCE!!! If a mheshimiwa/cowboy contractor bought a less than 3 year old 5 million car, they would have paid a million bob in exercise duty. Now they will pay 150k!!! The poor will be paying taxes for the rich!!! Even republicans (In the US) would be impressed!!! My take. The excise duty amount will be the higher of the 200k,or the 20% of customs value, whichever would be higher. I don't think one importing a Maserati would pay the same excise duty, as someone buying the Indian Nano,if the cars were of the same age. With the taxman, it's always the higher of the two. Minimum excise duty payable would 200k but there won't be maximum. The higher the value, the higher the amount. Read the proposal and better yet post the link here. Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
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Rank: New-farer Joined: 4/8/2015 Posts: 42
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As said above, the higher of the two will apply. You can take that to your local mpesa agent
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Sevian wrote:As said above, the higher of the two will apply. You can take that to your local mpesa agent Link? The opposite of courage is not cowardice, it's conformity.
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