KRA OMITS POPULAR CAR MODELS IN NEW TAX LIST RAISING QUESTIONS AMONG IMPORTERS

KRA Omits Popular Car Models in New Tax List, Raising Questions Among Importers

The Kenya Revenue Authority (KRA) has released a revised Current Retail Selling Price (CRSP) schedule that will guide the taxation of imported used motor vehicles effective July 1, 2025. The new framework replaces fixed valuation rates with model-specific retail prices, a move aimed at aligning tax assessments with actual market values.

However, the latest list has excluded more than 14 commonly imported car models, including the Toyota Vitz, Subaru Impreza G4, Mazda Atenza, and Toyota Harrier. These models are among the most popular with private motorists, ride-hailing drivers, and small-scale business owners.

According to the updated CRSP schedule published on the KRA website, the authority did not provide specific valuations for these omitted models. This development has raised concerns among car importers and industry stakeholders about possible inconsistencies in tax assessments for vehicles not included in the list.

Under the CRSP system, import duty, excise duty, and value-added tax (VAT) for second-hand cars are calculated based on the vehicle’s retail selling price. In the absence of listed values, taxes may be determined using alternative valuation methods, which some stakeholders fear may vary widely or result in inflated charges.

KRA has advised all importers and clearing agents to refer to the revised list and confirm applicable vehicle categories before proceeding with import processes. The authority also indicated that the list is subject to periodic updates and called on stakeholders to stay informed through official channels.

The omissions come at a time when Kenya’s used car market continues to register high demand, particularly for budget friendly models. According to industry data, models like the Toyota Vitz and Subaru Impreza account for a significant percentage of annual used car imports.

Importers have called for clarification on the omission of the popular models and urged the tax authority to provide timely updates to prevent disruptions in vehicle clearance and registration processes.

As of June 4, KRA had not issued an official statement explaining the exclusion of the listed models.