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KRA ARE THIEVES!!!
Rank: Member Joined: 10/22/2009 Posts: 5
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4 months ago I imported a subaru imprezza registered in 2002 February from Japan. The specs of the vehicle were 1500cc,non turbo,GG 3 engine. I paid an import duty of KSHS. 228,000 when when it arrived in July. I am importing a second one and my clearing agent tells me the tax for a similar vehicle,registered in 2002 september and arriving in November is now KSHS. 346,000. Apparently a new import duty schedule was issued in September by KRA which increased duty for certain 'popular' vehicles. I have tried getting through to the valuation department at KRA to clarify this issue but to no avail. Does anyone have any information on this new tax schedule or anyone in KRA I can talk to?
Thanks
To be or not to be,that is the question
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Rank: Chief Joined: 1/3/2007 Posts: 18,099 Location: Nairobi
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The KRA is arbitary... many rules make no sense or are imposed ad hoc... A pity... Who still najivunia kuwa mkenya? Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 10/14/2009 Posts: 2,057
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clarify with mkg and communication office which is headed by mr. Onyonyi. Let Skerians know the response from KRA The man who marries a beautiful woman,and the farmer who grows corn on the roadside have the same problem. If you are an eagle don't hang around with chickens; chickens don't fly....
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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Let's look at it differently; You come to my shop and buy a packet of sugar and I tell you that it will cost you sh90. You pay and go away. Then I realise that I had undercharged you. Do I call you back and ask you to top up? No; I let you go and immediately up the price to the proper sh120. 15 minutes later you come back to buy more sugar. You have also realised that my price was much lower than the market average. Now; am I obliged to sell the second packet at the wrong price of sh90? No,I explain to you that I had a mistake the first time round and that by selling at sh90 I am making losses. Therefore; I wouldn't say 'KRA are thieves'; I think they realised they have been undercharging the duty on certain vehicles and rectified the situation. Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow) Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Mukiha,
I thought duty is based purely on the C&F cost of the vehicle and not popularity?Its like saying since tusker is a popular beer,its excise duty should be charged differently...or is this the case?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@Chaka; No. Duty is NOT based on C&F value! Duty is based on TAXABLE value; which can be determined from the CIF or the C&F or the CRSP of the vehicle.... May be you don't know this,but there are many importers who ask their suppliers to quote lower values on the invoices than the tru value paid for the vehicle. This is why KRA was using pre-shipment valuation a few years ago,but that proved too expensive. Now they assess the taxable value based on any of the the above figures. Behind the gardens...Behind the wall...Under the tree (Including: Red...Dark Blue...Yellow) Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Veteran Joined: 4/1/2009 Posts: 1,883
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oohay,from what my clearing agent told me some time back,the duty for your two vehicles could not be the same as one would be taxed as a 2002 vehicle while the second one would be taxed as a 2003 vehicle hence higher duty. reason being that it is a september 2002 vehicle and the government year ends in june.
and on top of that,you failed to do due diligence and hence did not get to know about the new policy/regulation/rule. you cannot blame kra for that now.
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Rank: Member Joined: 10/20/2009 Posts: 2
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kra are just implementers of the INCOME TAX ACT,VAT&EXCISE ACT and the CUSTOMS ACT.whatever the charges,you may have been conned by your clearing agent and you are blaming KRA.just into the Times Tower and request to talk to the Incharge Valuation based on the 10th floor.you will leave that building appreciating KRA and its existence in Kenya.
TYRA
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Tyra,
What you are saying is that I can go to times towers and tell them the car model that I wish to import and year and month of registration and they will tell me the duty to be paid?
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Rank: Elder Joined: 6/17/2008 Posts: 23,365 Location: Nairobi
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Chaka,yeah dat's da point! The chief value of money lies in the fact that one lives in a world in which it is overestimated. ..."Wewe ni mtu mdogo sana....na mwenye amekuandika pia ni mtu mdogo sana!".
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Rank: Member Joined: 10/22/2009 Posts: 5
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Dear SKerians,thank you all for your posts. For all of you who engage in the business of importing vehicles,it is official that the import duty for subarus,the new rav 4 and nissan xtrails has been increased starting last week!! Please be warned. Honestly,I think someone somewhere has failed to meet his or her tax targets. The current retail selling price for these vehicles couldnt have changed,I mean some are 2002 vehicles!
@Tyra: I will be at Times Tower 10th floor tomorrow morning. Thanks
To be or not to be,that is the question
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Rank: Member Joined: 10/22/2009 Posts: 5
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@mkenyan: a 2002 September vehicle that docks in november will not be taxed as a 2003 vehicle,had it arrived in July then it would. A 2002 december vehicle arriving in October will be taxed as a 2003 vehicle. It's an issue of when the vehicle arrives relative to the registration date. About doing my homework,I certainly did,3 weeks ago I was told the duty would be 228,000 which is what I paid 4 months ago. I would never have imagined that these things can change like the stock exchange.
To be or not to be,that is the question
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Rank: Chief Joined: 1/3/2007 Posts: 18,099 Location: Nairobi
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Makes no sense... why wud the DOCKING date be more important than the MANUFACTURING/REGISTRATION date of the vehicle? Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 9/29/2006 Posts: 2,570
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Docking date could be of import also. Can u risk buying a 2k2 car in dec to dock in feb- 10?? Just a thought. Crocodile tears: If you can't assist me when I'm alive en you attend my funeral. The opposite of courage is not cowardice, it's conformity.
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Rank: Chief Joined: 1/3/2007 Posts: 18,099 Location: Nairobi
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@jerry - That (docking/importing on time) is an importer problem... As an end-user,I would only buy a properly registered car... Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 4/1/2009 Posts: 1,883
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oohay,thanks for that clarification though am even more confused than before now. why that difference due to the docking month? and apologies for my presumption as it seems that you did all that you humanely could.
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Rank: Member Joined: 3/23/2007 Posts: 127
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@oohay...my car sale side hustle was nipped in the bud 5yrs ago by this very issue... how do you compete...with guys paying lower taxes...hio kazi iko na wenyewe
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Rank: Veteran Joined: 10/6/2007 Posts: 1,177 Location: Nairobi - Kenya
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@ oohay ulienda..? When you run so fast to get somewhere,you miss the fun of getting there... Life is not a race,so take it slowly.... When you hear what I say, you will not understand. When you see what I do, you will not comprehend
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Rank: Member Joined: 4/6/2009 Posts: 78
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@oohay: did you know that the impreza wagon comes in two non turbo versions.GG2- 2WD and GG3-4Wd naturally the GG3 is more expensive.KRA bases duty rates on retail prices.from the beginning of the year the Ksh has been stregthening against the US$ but weakening against the Japanese Yen and South African Rand.
Hence,showroom prices for most brand new japanese cars have jumped.If you look at the latest KMI stats they quote impreza's at Ksh 3 million- am not sure if this is the 2WD or 4WD.The duty may be correct.
Sometimes stockskenya is a case of the blind leading the blind.
JK
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Rank: Member Joined: 10/22/2009 Posts: 5
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@kamaa I went to times tower,10th floor and spoke to a gentleman in the valuation department who confirmed that the Current Retail Selling Price (CRSP) was reviewed for certain vehicles based on advice from local Retailers. A circular was released towards the end of September with this directive. The ONLY people who had this information were the guys in valuation,not even the guys at Customs had an idea,they kept on insisting that the duty would 221,000/=!!
To be or not to be,that is the question
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