Car importers have protested a decision to increase import duty to 35 percent on motor vehicles, saying the new rates were implemented without public participation.
Car Importers Association of Kenya chairman Peter Otieno said implementation of the 35 percent import duty on Kenyan car buyers must be halted because industry players were not consulted before implementation, which is against the Constitution.
“What we mean to say is that no public participation was conducted and we cannot accept these amendments whether they have been done through Kenya or East African Community,” said Mr Otieno in a letter to the Kenya Revenue Authority (KRA).
The new import tax, he said, means that vehicle importers must adjust their sale prices upwards by between Sh50,000 to Sh100,000 for small models of cars and by more than Sh500,000 for fuel-guzzlers as they factor in the tax when selling their vehicles.
“We believe that the Constitution is supreme and the public participation was necessary as the Constitution so dictates that anything touching on the livelihood of the other, the involvement of key stakeholders is paramount.”
Kenyan car buyers were early this month hit with a 35 percent import duty after the East African Community (EAC) approved an application by Kenya to raise duty under the common external tariff.
The review of the import duty to 35 percent from 25 percent took effect on July 1 following the approval by the EAC Council of Ministers.
The EAC deal also approved a request by Kenya to keep elevated taxes on household gadgets such as mobile phones and television sets for another year in efforts to support tax measures by the William Ruto administration to raise Sh211 billion in additional revenue this financial year.
