When importing a car to Kenya, understanding the taxes involved is crucial. Let’s consider Chris Alex, who wants to import an 8-Year Nissan Juke 1500cc petrol fueled. The taxes and fees can be complex, but we will break them down step by step.
8-Year Nissan Juke 1500cc Import Taxes
Before we delve into the details, here’s a summary of the costs Chris will incur:
| Cost Item | Amount (KES) |
|---|---|
| Current Retail Selling Price (CRSP) | 3,151,665.00 |
| Depreciation (65%) | – |
| Customs Value | 507,164.48 |
| Import Duty (35%) | 177,507.57 |
| Excise Value | 684,672.05 |
| Excise Duty (25%) | 171,168.01 |
| VAT (16%) | 136,934.41 |
| Import Declaration Fee (IDF) (3.5%) | 17,750.76 |
| Railway Development Levy (RDL) (2%) | 10,143.29 |
| Total Taxes | 513,504.04 |
Breaking Down the Costs
Current Retail Selling Price (CRSP)
The CRSP is the price of the car in the Kenyan market. For the Nissan Juke, this is KES 3,151,665.00.
Depreciation
Cars depreciate over time. For an 8-year-old car, the depreciation rate is 65%. This depreciation is taken into account to determine the Customs Value.
Customs Value
Next, we calculate the Customs Value by applying the depreciation to the CRSP. For Chris’s Nissan Juke, the Customs Value is KES 507,164.48.
Import Duties and Taxes
Import Duty
First, Import Duty is charged at 35% of the Customs Value. For Chris’s car, this amounts to KES 177,507.57.
Excise Duty
Next, we calculate the Excise Duty on the Excise Value, which is the Customs Value plus Import Duty. It is charged at 25%, resulting in KES 171,168.01.
Value Added Tax (VAT)
Furthermore, VAT is charged at 16% on the sum of the Customs Value, Import Duty, and Excise Duty. This totals KES 136,934.41.
Additional Fees
Import Declaration Fee (IDF)
In addition, the IDF is 3.5% of the Customs Value. For the Nissan Juke, this is KES 17,750.76.
Railway Development Levy (RDL)
Moreover, the RDL is 2% of the Customs Value, amounting to KES 10,143.29.
Total Taxes and Fees
Therefore, when all the taxes and fees are added up, Chris Alex will pay a total of KES 513,504.04 to import his 8-Year Nissan Juke 1500cc.
Conclusion
In conclusion, importing a car like the 8-Year Nissan Juke 1500cc involves several taxes and fees. By understanding each component, Chris Alex can better prepare for the financial aspects of importing his vehicle to Kenya.