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Kenya plans to amend tax on second hand cars

In a move aimed at making cars affordable, Kenya is expected to amend a budget proposal to impose a 20 per cent excise duty on imported used motor vehicle spare parts.

To discourage the importation of second hand motor cars in Kenya and to energize the local car and spare parts assembly firms, Finance minister Amos Kimunya imposed a 20 per cent excise duty on all imported second hand spare in the June budget.

The Government of Kenya aiming to collect huge amount of tax from the Imported spare parts as more Kenyans use second hand motor vehicles.

According to the Kenya Auto Bazaar Association (KABA)-the umbrella organization of second hand car dealers- a total of 42,000 imported second hand cars were registered in Kenya in 2006 compared to 10,000 new units.