The second hand cars importation market can now breathe easy after the high court dismissed the current taxation formula used by KRA as punitive and illegal.
This ruling means that the amount of taxes paid on used motor vehicles is set to drop.
This will also see the selling price drop, further passing benefits to the end buyer.This ruling was made by the High Court in Mombasa.
In the ruling, Justice Eric Ogola declared that the CRSP is unconstitutional and ordered KRA to consult used car dealers when creating the next price list.
“A declaration that for purpose of continuity and in the interest of the public the transactions already effected via the said CRSP … shall continue to apply until such a time as the respondents will establish a new CRSP value in accordance with the law within 12 months from the date of this judgment,” Justice Ogola ruled.