Friday, April 19, 2024

KRA, NTSA to start crackdown of foreign vehicles from January

Foreign vehicles owned by operators in the country without a temporary importation of Private Motor Vehicle and Foreign Vehicle permit will be impounded effective January 1, the Revenue Authority has announced.

The taxman, in partnership with the National Transport and Safety Authority has also asked operators of such vehicles to acquire a temporary importation of road vehicles form- Form C32 issued at the border station.

The form is issued to foreigners with foreign identification or Kenyans with a valid work permit or proof of residency in a partner state.

The operators must also have the foreign motor vehicle registration book in their name and a valid power of attorney from the motor vehicle owner in case the operator is the agent of the owner.

“Individuals without these documents will not be issued with a Form C32 or be allowed to operate a foreign registered motor vehicle within the country and any such vehicles will be impounded,” the two authorities said.

Upon entry into the country, the operators will be required to make an application for the foreign permit with a valid Form C32 and a certificate of COMESA Insurance as key requirements.

The permit will be issued to two types of vehicles which include those on tour in Kenya and with an international circulation permit from country of origin.

The second category will be those vehicles entering Kenya with a Form C32. Those in this category will receive a free fourteen day temporary permit to be issued at entry points.

On expiry of the fourteen days, the applicants will seek lifetime extension of both forms from the customs and border control departments of the authority.

The authorities noted that no vehicles will be allowed out of a customs border station without the owner or agent having Form C32 and a foreign permit.

While these requirement stands, KRA and NTSA have warned all operators of foreign vehicles who do not meet the set conditions that they will be required to re-export their vehicles with immediate effect or be impounded.

Currently, only vehicles manufactured from the year 2010 are allowed for importation into the country while all left-hand drive vehicles are not allowed for registration unless they have a special purpose.

Also, all motor vehicles imported into Kenya must be inspected prior to shipment for road worthiness.

According to the Kenya Revenue Authority, vehicles confirmed for importation will be charged an import duty at 25 per cent, excise duty at 20 per cent and value added tax at 16 per cent.

Last year in August, the taxman impounded over 30 vehicles with expired foreign plate permits, with most coming from neighbouring Uganda and Tanzania.

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