Daniel Waweru is considering importing an 8-year-old Auris 1500cc petrol-fueled car into Kenya. Understanding the import taxes for 8-year Auris 1500cc is crucial for budgeting and decision-making. This article breaks down the various costs involved and provides a detailed overview of the total taxes applicable.
Import Tax Breakdown
To help Daniel Waweru and others like him, we’ve compiled the import taxes for an 8-year Auris 1500cc. Below is a table summarizing the costs and taxes:
| Cost Item | Amount (KES) |
|---|---|
| Current Retail Selling Price (CRSP) | 2,166,923.00 |
| Depreciation (65%) | 1,408,496.95 |
| Customs Value | 348,700.25 |
| Import Duty (35%) | 122,045.09 |
| Excise Value | 470,745.34 |
| Excise Duty (25%) | 117,686.34 |
| VAT (16%) | 94,149.07 |
| IDF (3.5%) | 12,204.51 |
| RDL (2%) | 6,974.01 |
| Total Taxes | 353,059.01 |
Understanding the Costs
Current Retail Selling Price (CRSP)
The CRSP is the starting point for calculating import taxes. For Daniel’s Auris 1500cc, the CRSP is KES 2,166,923.00.
Depreciation
Since the vehicle is 8 years old, a 65% depreciation rate is applied. This results in a depreciated value of KES 1,408,496.95.
Customs Value
After applying depreciation, the customs value is KES 348,700.25. This value forms the basis for calculating subsequent taxes.
Import Duty
Import duty is charged at 35% of the customs value. For the Auris 1500cc, this amounts to KES 122,045.09.
Excise Duty
Next, we calculate the excise value, which is the sum of the customs value and the import duty, totaling KES 470,745.34. The excise duty is 25% of the excise value, resulting in KES 117,686.34.
VAT
Value Added Tax (VAT) is applied at 16% on the sum of the customs value, import duty, and excise duty, amounting to KES 94,149.07.
IDF and RDL
The Import Declaration Fee (IDF) is 3.5% of the customs value, totaling KES 12,204.51. The Railway Development Levy (RDL) is 2% of the customs value, which is KES 6,974.01.
Total Taxes
Combining all these taxes gives a total of KES 353,059.01.
Additional Costs
In addition to the taxes outlined above, Daniel should also consider other costs such as shipping, insurance, and registration fees. These additional expenses can significantly affect the overall cost of importing the vehicle.
Shipping and Insurance
Shipping costs vary depending on the country of origin and the shipping method. Insurance is crucial to cover potential damages during transit.
Registration Fees
Once the vehicle arrives in Kenya, it needs to be registered. This includes paying for number plates and other administrative fees.
Conclusion
Understanding the import taxes for 8-year Auris 1500cc is essential for anyone looking to import a similar vehicle into Kenya. By considering all the taxes and additional costs, Daniel Waweru can make an informed decision and accurately budget for his new car. Remember to always verify the latest rates and regulations as they can change periodically.