Importing an 8-year-old Mazda 3/Axela to Kenya can be exciting, but import taxes can quickly become a hurdle. These taxes significantly impact the final cost of your car. Don’t worry, we can navigate this together! Let’s use Alice Mercy’s situation as an example to understand the key factor: Import Tax: 8-Year Mazda 3/Axela.
Table Illustration of Import Taxes
| Description | Amount (KES) |
|---|---|
| Current Retail Selling Price (CRSP) | 3,089,000.00 |
| Depreciation (65%) | -2,008,330.00 |
| Import Duty (25%) | 173,978.16 |
| Excise Value (Customs Value + Import Duty) | 671,058.62 |
| Excise Duty (25%) | 167,764.66 |
| VAT(Value Added Tax) (16%) | 134,211.72 |
| IDF (Infrastructure Development Fee) (3.5%) | 17,397.82 |
| RDL (Railway Development Levy) (2%) | 9,941.61 |
| Total Taxes | 503,293.97 |
Understanding Key Factors
Alice wants to import an 8-Year Mazda 3/Axela with an engine capacity of 1500cc that uses petrol. To understand the total import tax she’ll incur, let’s break down the crucial elements that determine the final cost:
- CRSP: The KRA sets this estimated showroom price for a brand new Mazda 3/Axela in Kenya. For Alice, the CRSP is KES 3,089,000.00.
- Depreciation: Since Alice’s car isn’t brand new, the KRA applies a depreciation rate. This reduces the taxable value based on the car’s age. In Alice’s case, the depreciation is a significant 65%, bringing the Customs Value down to KES 497,080.46.
Breaking Down the Taxes
Now, let’s delve into the specific taxes Alice will encounter:
- Import Duty: Alice must pay a percentage of the Customs Value. The current import duty on vehicles is 35%, resulting in a charge of KES 173,978.16.
- Excise Duty: This tax is based on the sum of the Customs Value and the Import Duty. Therefore, for Alice, the Excise Value is KES 671,058.62, and the Excise Duty (at 25%) comes to KES 167,764.66.
- VAT : A standard VAT rate of 16% applies to the total value, including the Customs Value, Import Duty, and Excise Duty. For Alice, this translates to KES 134,211.72.
- Other Fees: Additionally, there are charges like the IDF and the RDL. These are calculated as a percentage of the CRSP, amounting to KES 17,397.82 and KES 9,941.61 respectively for Alice.
The Grand Total
By adding all these taxes and fees, we determine Alice’s total import tax bill: KES 503,293.97. This is a substantial sum to consider on top of the car’s purchase price and shipping costs. So, when planning to import an 8-Year Mazda 3/Axela, ensure you factor in these costs.
Important Note
Remember, this is just an example. The actual import taxes for your Mazda 3/Axela may vary depending on factors like the car’s year of manufacture, engine capacity, and any additional features.
Getting a Personalized Estimate
To get a more precise estimate, consider utilizing online resources like the KRA website or car import duty calculators offered by reputable companies. These tools provide a more personalized breakdown of the Import Tax: 8-Year Mazda 3/Axela based on the specific details of your vehicle.