Narok Senator Ledama Ole Kina has asked President William Ruto to double the tax on imported and used cars.
The ODM lawmaker in a statement on Friday, November 3, said developed countries were doing away with fuel-driven cars and were disposing them of in Kenya.
As such, the outspoken legislator told President William Ruto to warn Kenyan lenders against financing used cars.
“Banks should stop financing used cars and KRA through parliament very easy with William Ruto should now double taxes of used cars to stop dumping now that developed countries are doing away with fuel driven vehicles,” he said in X.
Ole Kina’s remarks come just days after the Kenya Revenue Authority (KRA) hit used car importers with a fresh round of tax increments after capping the maximum depreciation rate at 65 percent of the value of the vehicle from 70 percent previously.
KRA acting commissioner for the Customs and Border Control department Pamela Ahagi instructed the KRA staff to apply a new depreciation rate schedule for cars effective Friday, November 3.
“In compliance with this [Ruto’s] directive, Kenya Customs will apply the depreciation schedule…that was adopted by the East African Community Council of Ministers,” she wrote in a memo to staff on August 29.
“All staff is required to adhere to this valuation with effect from September 1, 2023.”
For instance, an importer of a Toyota Premio with a current retail selling price (CRSP) of KSh 3.27 million will, for example, pay an estimated KSh 1.096 million in taxes from Friday, up from KSh 939,221 previously.
