1. What is Motor Vehicle Tax?

The Kenya Revenue Authority (KRA) motor vehicle tax is calculated based on the Cost, Insurance, and Freight (CIF) value of the vehicle and the applicable tax rate. This tax is payable when importing vehicles into Kenya.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( CIF \) — Cost, Insurance, and Freight value in Kenyan Shillings (KES)
• \( Rate \) — Applicable tax rate as a percentage

Explanation: The tax is calculated by multiplying the CIF value by the tax rate (converted from percentage to decimal).

3. Importance of Vehicle Tax Calculation

Details: Accurate vehicle tax calculation is crucial for importers to budget properly and comply with KRA regulations. Underpayment may result in penalties while overpayment affects cash flow.

4. Using the Calculator

Tips: Enter the CIF value in KES and the applicable tax rate as a percentage (e.g., enter 25 for 25%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is included in CIF value?
A: CIF includes the cost of the vehicle, all insurance charges, and freight costs to bring the vehicle to Kenya.

Q2: How do I know the correct tax rate?
A: Tax rates vary by vehicle type, engine capacity, and age. Consult KRA's current tariff schedule or a customs agent.

Q3: Are there other charges besides this tax?
A: Yes, there may be additional fees like import declaration fee, VAT, and excise duty depending on the vehicle.

Q4: Can I pay this tax online?
A: Yes, through KRA's iTax system after completing the necessary customs documentation.

Q5: What if my vehicle is a gift?
A: Gifts may still be subject to taxation based on their assessed value. Consult KRA for specific cases.