Kenya's tax burden: Car prices shoot up by over Sh300,000
GRAPHIC | GENNEVIEVE AWINO | NMG
Imported car dealers have increased prices by up to Sh330,000 for some units as they pass on new taxes and currency depreciation costs to consumers in what has pushed the popular models beyond the reach of more Kenyans.
A comprehensive analysis of the impact of the new taxes on prices has revealed that the actual taxes on imported second-hand cars have jumped by an average of 14.69 percent, outpacing the 10 percent import duty increment imposed by the William Ruto administration.
The Kenya Revenue Authority (KRA) increased duty on imported cars to 35 percent from the previous 25 percent, setting the stage for the latest wave of price increments amid the weakening of the shilling.
The 10-percentage point rise on import taxes has also ended up increasing the other taxes on cars such as the excise duty and value added tax (VAT) as these taxes are loaded and paid cumulatively in that order.
