Vehicle Import Taxes

Taxes Applicable in Motor Vehicle Importation

One of the most common questions is how the duty and related taxes of an imported car is calculated. Depreciation of the car is one of the major factors that will influence the duty; Depreciation is determined from the year and month of first registration of the vehicle you intend to import.

Imported Vehicles Duty and Taxes.

The following taxes/duties are payable for motor vehicle imports based on customs value.

25% Import Duty

Excise Duty

This duty varies with vehicle category.

• Private passenger vehicles of petrol engine whose engine capacity exceeds 2500cc (30%)
• Private passenger vehicles of Diesel engine whose engine capacity exceeds 3000cc (30%)
• All Other Vehicle Categories (20%)

16% Value Added Tax (VAT)

2% Import Declaration Fees (IDF)

1.5% Railway Development Levy (RDL)

CIF – This is the customs value of the vehicle i.e. the Cost, Insurance & Freight paid for the vehicle.

However KRA uses the Current Retail Selling Price (CRSP) rather than the CIF of a vehicle but the two will give you more or less the same figure.