Daisy Oyugi wants to import a Harrier Hybrid ZSU65, a petrol-fueled vehicle with a 2493cc engine. Importing vehicles to Kenya involves a series of taxes and fees, which can significantly impact the total cost. This article will break down the import taxes for an 8-year Harrier Hybrid ZSU65, providing a clear understanding of the costs involved.
Import and Tax Calculation Table
| Description | Amount (KES) |
|---|---|
| Current Retail Selling Price (CRSP) | 7,457,296.00 |
| Depreciation | 65% |
| Customs Value | 1,200,024.64 |
| Import Duty (35%) | 420,008.63 |
| Excise Value | 1,620,033.27 |
| Excise Duty (25%) | 405,008.32 |
| VAT (16%) | 324,006.65 |
| IDF (3.5%) | 42,000.86 |
| RDL (2%) | 24,000.49 |
| Total Taxes | 1,215,024.95 |
Understanding the Import Process
Before diving into the specific taxes, it’s essential to understand the general import process in Kenya. The Kenya Revenue Authority (KRA) is responsible for assessing and collecting taxes on imported goods, including vehicles. The main taxes levied on imported cars are Import Duty, Excise Duty, Value Added Tax (VAT), Import Declaration Fee (IDF), and Railway Development Levy (RDL).
Key Details for Daisy Oyugi’s Harrier Hybrid
To calculate the import taxes for Daisy Oyugi’s Harrier Hybrid ZSU65, we start with the Current Retail Selling Price (CRSP) and apply depreciation, followed by the calculation of various taxes based on the Customs Value.
Current Retail Selling Price (CRSP)
The CRSP for the Harrier Hybrid ZSU65 is KES 7,457,296.00. This value is used as the baseline for calculating depreciation and subsequent tax values.
Depreciation
The vehicle depreciates by 65%, resulting in a significantly reduced Customs Value:
- Depreciation: 65%
- Customs Value: KES 1,200,024.64
Import Duty
The Import Duty is calculated as 35% of the Customs Value:
- Import Duty (35%): KES 420,008.63
Excise Duty
Excise Duty is calculated based on the Excise Value, which is the sum of the Customs Value and the Import Duty:
- Excise Value: KES 1,620,033.27
- Excise Duty (25%): KES 405,008.32
Value Added Tax (VAT)
VAT is 16% of the sum of the Excise Value and the Excise Duty:
- VAT (16%): KES 324,006.65
Import Declaration Fee (IDF)
The IDF is 3.5% of the Customs Value:
- IDF (3.5%): KES 42,000.86
Railway Development Levy (RDL)
The RDL is 2% of the Customs Value:
- RDL (2%): KES 24,000.49
Total Import Taxes
Adding up all these taxes gives us the total import taxes for Daisy Oyugi’s 8-year Harrier Hybrid ZSU65:
- Total Taxes: KES 1,215,024.95
Conclusion
Understanding the import taxes for an 8-year Harrier Hybrid ZSU65 is crucial for potential importers like Daisy Oyugi. By knowing the specific costs associated with Import Duty, Excise Duty, VAT, IDF, and RDL, importers can better plan their budget and make informed decisions. The total import taxes for Daisy Oyugi’s Harrier Hybrid ZSU65 amount to KES 1,215,024.95, highlighting the significant impact of these fees on the overall cost of importing a vehicle to Kenya.