1. What is KRA Motor Vehicle Duty?

The Kenya Revenue Authority (KRA) motor vehicle duty is a tax imposed on imported vehicles. It consists of customs duty and VAT, calculated based on the vehicle's CIF value (Cost, Insurance, and Freight) and customs value.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value in KES
• \( Customs Value \) — Assessed customs value of the vehicle
• \( Duty Rate \) — Percentage duty rate (typically 25%)
• \( VAT \) — Value Added Tax (typically 16%)

Explanation: The duty is calculated as a percentage of the combined CIF and customs value, with VAT applied to the total value including duty.

3. Importance of Duty Calculation

Details: Accurate duty calculation helps importers budget for vehicle imports, comply with KRA regulations, and avoid unexpected costs during the clearing process.

4. Using the Calculator

Tips: Enter the CIF value and customs value in Kenyan Shillings. The default duty rate is 25% and VAT rate is 16%, but these can be adjusted if needed.

5. Frequently Asked Questions (FAQ)

Q1: What is CIF value?
A: CIF stands for Cost, Insurance, and Freight - the total value of the vehicle including purchase price, insurance, and shipping costs to Kenya.

Q2: How is customs value determined?
A: Customs value is assessed by KRA based on the vehicle's make, model, year, and condition. It may differ from the purchase price.

Q3: Are there different duty rates for different vehicles?
A: Yes, duty rates may vary based on vehicle type (e.g., passenger cars vs. commercial vehicles) and engine capacity.

Q4: What other charges might apply?
A: Additional charges may include excise duty, import declaration fee (IDF), and railway development levy (RDL).

Q5: Is this calculator official?
A: This is an estimation tool. For official duty calculations, consult KRA or a licensed clearing agent.