Vehicles Exempted From Tax During Importation

Motor vehicle importation in Kenya is an expensive affair that may gobble a large percentage of one’s income or savings.

However, East African Community Customs Management Act 2004 provides for the duty-free importation of motor vehicles, especially based on specific conditions and criteria.

1. Vehicles imported by Persons Living with Disability 

The Persons with Disabilities Act 2003 and The Persons with Disabilities (Income Tax Deductions and Exemptions) Order 2010, provide exemptions for this category of Kenyans.

2.Motor-sports Vehicles

Cars that are used in competitive sporting events which primarily involve the use of motorised vehicles are exempted from paying duties under specific provisions.

3.Military-imported combat vehicles.

Kenya Defence Forces (KDF) is by law allowed to buy specialised motor vehicles, including combat tactical machines without going through the process of disclosing and paying duties.

4.Vintage Car Import 

Kenyan automotive enthusiasts and collectors love vintage cars, which are expensive.

The majority of vintage vehicles were created between 1919 and 1930, a time when they were uncommon and a social status symbol. 

Vintage vehicles can be classified according to several age scales and can be either antique or classic.

The actual taxes on imported used automobiles have increased by an average of 14.69 percent, exceeding the 10 percent increase in import duties imposed by the William Ruto government, according to a thorough investigation of the effects of the new taxes on prices.

The current round of price increases amid the depreciation of the shilling began when the Kenya Revenue Authority (KRA) raised the tariff on imported autos from 25% to 35%.

Lowering the maximum depreciation rate, which the taxman says is in line with other countries in the seven-nation East African Community trading bloc, will raise the value applied when calculating import duty.

An increase in import duty has a corresponding impact on excise duty and value-added tax as the value is compounded for taxation purposes.