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Is duty exempt possible for locally assembled vehicles?
Xymalos
#1 Posted : Monday, December 23, 2019 8:05:19 AM
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Joined: 2/14/2015
Posts: 97
Location: Kenya
Diaspora who live in countries where vehicles are left hand drive (e.g., USA) are allowed to import a right hand vehicle (e.g., from Japan) duty free if they are permanently relocating back to Kenya. Why would the government not allow such diaspora returnees buy NEW locally assembled vehicles duty free, thereby supporting local industries that assemble new vehicles plus sending more dollars back to the country that would otherwise end up in a foreign country where a car is imported from??
otienosmall
#2 Posted : Sunday, December 29, 2019 7:58:58 AM
Rank: Member


Joined: 10/8/2010
Posts: 281
I think what you are saying may not be feasible. The duty exemption for returning citizens is aimed at taking care of your personal items that you were using out there. For example a car is treated like a laptop that you were purportedly using out there. As a requirement thus for you to benefit on this, you must have had that car for at least 1 year for your personal use. I benefited from this for my current ride so I knowDrool
sparkly
#3 Posted : Sunday, December 29, 2019 12:30:35 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Xymalos wrote:
Diaspora who live in countries where vehicles are left hand drive (e.g., USA) are allowed to import a right hand vehicle (e.g., from Japan) duty free if they are permanently relocating back to Kenya. Why would the government not allow such diaspora returnees buy NEW locally assembled vehicles duty free, thereby supporting local industries that assemble new vehicles plus sending more dollars back to the country that would otherwise end up in a foreign country where a car is imported from??


There is no Customs Duty on locally assembled vehicles
Life is short. Live passionately.
Xymalos
#4 Posted : Sunday, December 29, 2019 6:27:27 PM
Rank: New-farer


Joined: 2/14/2015
Posts: 97
Location: Kenya
otienosmall wrote:
I think what you are saying may not be feasible. The duty exemption for returning citizens is aimed at taking care of your personal items that you were using out there. For example a car is treated like a laptop that you were purportedly using out there. As a requirement thus for you to benefit on this, you must have had that car for at least 1 year for your personal use. I benefited from this for my current ride so I knowDrool


For your current ride that you imported, is it a right hand drive that you had owned and just shipped it, or you were a resident of a country where vehicles are left hand drive and had to sell then import equivalent right hand drive? Diaspora is US where vehicles are left hand have to sell & import equivalent right hand drive. Its this latter group that I was thinking may be exempted from taxes (e.g., excise tax etc) to entice them to buy locally assembled vehicles.
Xymalos
#5 Posted : Sunday, December 29, 2019 6:30:32 PM
Rank: New-farer


Joined: 2/14/2015
Posts: 97
Location: Kenya
sparkly wrote:
Xymalos wrote:
Diaspora who live in countries where vehicles are left hand drive (e.g., USA) are allowed to import a right hand vehicle (e.g., from Japan) duty free if they are permanently relocating back to Kenya. Why would the government not allow such diaspora returnees buy NEW locally assembled vehicles duty free, thereby supporting local industries that assemble new vehicles plus sending more dollars back to the country that would otherwise end up in a foreign country where a car is imported from??


There is no Customs Duty on locally assembled vehicles


Maybe they can be exempted from taxes applicable to new cars - excise duty and VAT as an incentive to buy locally assembled vehicles.
sparkly
#6 Posted : Sunday, December 29, 2019 8:48:29 PM
Rank: Elder


Joined: 9/23/2009
Posts: 8,083
Location: Enk are Nyirobi
Xymalos wrote:
sparkly wrote:
Xymalos wrote:
Diaspora who live in countries where vehicles are left hand drive (e.g., USA) are allowed to import a right hand vehicle (e.g., from Japan) duty free if they are permanently relocating back to Kenya. Why would the government not allow such diaspora returnees buy NEW locally assembled vehicles duty free, thereby supporting local industries that assemble new vehicles plus sending more dollars back to the country that would otherwise end up in a foreign country where a car is imported from??


There is no Customs Duty on locally assembled vehicles


Maybe they can be exempted from taxes applicable to new cars - excise duty and VAT as an incentive to buy locally assembled vehicles.


@otienosmall is right. The Duty exemption for returning residents applies to personal effects. The Government is already doing the returning residents a favour by allowing them to swap their LHD for a RHD.

Extending the exemption to local taxes will need lobbying with National Treasury
Life is short. Live passionately.
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