In a letter dated January 30, Car Importers Association of Kenya (CIAK) chairman Peter Otieno said KRA took the decision without involving them as players. The association said the new tax regime, based on the current retail selling price (CRSP), should not be implemented until pending queries are resolved. By imposing tax burdens, our fear is that this industry will soon be on its knees as many will close shop. The association has objected to the 43 percent tax on used motor vehicles being imposed by KRA which took effect on February 5. Lexus R450 3500cc will now retail at Sh11.5 million and will attracting a duty of Sh1.2 million.

Source: Daily Nation February 07, 2018 13:18 UTC