The Kenya Revenue Authority (KRA) has announced plans to introduce a new tax valuation system for imported second-hand vehicles, a move that could change how much importers pay in taxes when bringing cars into the country.
KRA Commissioner General Adan Mohamed revealed that the authority was engaging players in the motor vehicle industry to introduce the second version of the Current Retail Selling Price (CRSP) schedule.
“On the issue of CRSP, we are in discussions with the motor vehicle industry to introduce CRSP Version II so that we can ensure that if you import a car from a particular country, depending on its age, that is the duty you are able to pay,” Mohamed said on Friday, November 13, during the Institute of Certified Public Accountants of Kenya (ICPAK) 43rd Annual Seminar in Mombasa.
CRSP is a reference pricing schedule used by KRA to establish the customs value of imported second-hand vehicles, taking into account details such as their make, model, specifications, and year of manufacture.
Under the existing system, the authority does not rely solely on the amount an importer pays for a vehicle when calculating taxes but instead, it uses the CRSP schedule to establish a reference value before applying depreciation based on its age.
