When importing vehicles to Kenya, you will encounter several costs and taxes. Elizabeth Musenya, for example, wants to import an 8-year Corolla Axio NZE 161 AEXGK MT 1500cc. Understanding the taxes for importing an 8-year Corolla Axio NZE 161 AEXGK 1500cc can help in budgeting and avoiding unexpected expenses. Here’s a breakdown of the import taxes and other costs involved.
Taxes for Importing
When importing an 8-year Corolla Axio NZE 161 AEXGK 1500cc, you must consider various taxes. These include import duty, excise duty, VAT, IDF, and RDL. The following table provides a detailed breakdown of these taxes.
| Description | Value (KES) |
|---|---|
| Current Retail Selling Price (CRSP) | 2,767,061.00 |
| Depreciation | 65% |
| Customs Value | 445,274.18 |
| Import Duty (35%) | 155,845.96 |
| Excise Value | 601,120.15 |
| Excise Duty (25%) | 150,280.04 |
| VAT (16%) | 120,224.03 |
| IDF (3.5%) | 15,584.60 |
| RDL (2%) | 8,905.48 |
| Total Taxes | 450,840.11 |
Understanding the Taxes
1. Customs Value
First, calculate the customs value after accounting for 65% depreciation. For the Corolla Axio, this value is KES 445,274.18.
2. Import Duty
Next, the import duty is 35% of the customs value. This amounts to KES 155,845.96.
3. Excise Duty
Then, excise duty is calculated on the excise value, which includes the customs value and the import duty. At 25%, this charge is KES 150,280.04.
4. VAT
Afterward, the Value Added Tax (VAT) is 16% of the excise value, resulting in KES 120,224.03.
5. IDF and RDL
Finally, you need to consider the Import Declaration Fee (IDF) and the Railway Development Levy (RDL). The IDF is 3.5% of the customs value, amounting to KES 15,584.60, while the RDL is 2% of the customs value, adding KES 8,905.48.
Additional Costs
In addition to the taxes for importing the 8-year Corolla Axio , you should also consider other potential costs. These might include shipping fees, insurance, and port charges, which vary based on the shipping company and distance.
Conclusion
By understanding these taxes, Elizabeth can better prepare for the import process. The total taxes for importing amount to KES 450,840.11. Factoring in additional costs will provide a comprehensive view of the total expenses involved in bringing the vehicle to Kenya.