May 23, 2024

Vehicle owners to pay Sh100,000 in new tax proposals

2 min read
Vehicle owners to pay Sh100,000 in new tax proposals

The Finance Bill 2024 has proposed the introduction of a Motor Vehicle Tax, with a rate of 2.5 percent of the vehicle's value

The Finance Bill 2024 has proposed the introduction of a Motor Vehicle Tax, with a rate of 2.5 percent of the vehicle’s value.

The minimum tax payable to the Commissioner on each vehicle at the time of the issuance of an insurance cover will be Sh5,000 with a maximum amount of Sh100,000.

The Bill stated that the calculation would be based on make, model, engine capacity, and year of manufacture.

Additionally, an insurer of a vehicle is expected to collect and remit the motor vehicle tax within five working days after issuing an insurance cover.

List of transactions you won’t do without KRA PIN; Finance Bill 2024

Millie Odhiambo advices men and women after Sheila Wegesha murder

New proposals for VAT changes in the Finance Bill 2024

All tourists to plant tress upon arrival in Kenya; CS Mutua “One Tree per Tourist

Government issues warning over counterfeit cancer drug in the Kenyan market

The Bill warned that an insurer who fails to collect and remit the motor vehicle tax shall be liable to pay a penalty equivalent to 50 percent of the uncollected tax and the actual amount of the uncollected tax.

The tax is exempted to ambulances, and motor vehicles owned by the national government, county government, Kenya Defence Forces, National Police Service, National Intelligence Service or a person exempt from tax under the Privileges and Immunities Act Cap. 179.

“The Commissioner may prescribe such guidelines as may be appropriate for determining the valuation of a motor vehicle,” the Bill added.

The Bill contains tax proposals that the Kenya Kwanza government wants to use to raise revenue and finance its ambitious projects.

Also read,

Miguna Miguna chides Ruto after US Congress speaker declines his invite for a joint house session

Musalia, Wetang’ula strike back at Gov Natembeya for constantly attacking them

Details of a meeting between Raila and KMPDU officials

Three Boda Boda riders pulling stunts on the road crushed to death

Fallout after US Congress Speaker declines President Ruto joint address session

Ruto meets KMPDU officials days after doctors called off the strike

Follow us

FaceBook

Telegram

error: Content is protected !!