Business

This Is Why Importing Second-Hand Cars Is Expensive

Published

1 year ago

January 10, 2021

The Tanzania Revenue Authority (TRA) has commented on increased costs of some imported used vehicles in early January 2021, saying this was the result of routine valuation process that based rates on the current actual value of the vehicles in the global market.

TRA said it normally revises the rates after every three months to update the pricing data for vehicles. This may lead to higher or lower rates charged, depending on vehicle market prices.

The authority said it visits sources, including web sites, of companies selling vehicles for updates.

TRA’s taxpayer service and education director Richard Kayombo told journalists that tax paid on the imported used vehicles was calculated on the Used Motor Vehicle Valuation System, an online portal that’s run by the authority.

“When we update dutiable values of used motor vehicles, the charges change. For some vehicles, the tax may go up, while for some it may go down – thus affecting the price levels,” he said.

Mr Kayombo said TRA also charges excise duty based on age, whereby a vehicle’s age is calculated according to the calendar year. For instance, private cars aged eight to nine years are subjected to an excise duty of 15 percent while for a car that is aged more than 9 years is charged at 30%.

“This means if you ordered a private used car for nine years in 2020 and it arrives in Tanzania in 2021, it will be charged at 30 percent and not 15 percent which was supposed to be the rate if the car were to arrive in the same year of 2020.

“For that reason, importers of cars of the same age who ordered cars in 2020 and it arrived in 2021, it is clear that there would be an increase of tax,” he said.

According to a TRA statement to Mwananchi the vehicle valuation system complies with the country regulations and the prices are posted on the authority’s web site to help importers calculate the amount of tax they would be needed to pay once the vehicle reached the country.

The updating of the (Customs CIF value) for second-hand imported cars raised concern among stakeholders especially dealers and retailers who claimed that the change in tax caused by this update could affect their businesses.

“For cars like IST whose CIF was valued at $1,800 is now at $2,500 – which means its tax goes up as the dutiable price would have increased,” said Hendh Razack, a car dealer in the city.

Saidi Anishk – another car dealer – said they started noticing price changes from the beginning of this year, making retailers worried.

Citizen

Business

Flights From Dubai To Nairobi Resume

Published

17 hours ago

January 25, 2022

Staff Writer

Kenya government has lifted a ban on flights from Dubai entering its territory ending a weeks-long dispute with the United Arab Emirates.

The East African nation had imposed a ban on all inbound and transit passenger flights from the Middle East nation two weeks ago. The ban was lifted Monday midnight, offering a major relief to hundreds of travellers between the two destinations.

The ban did not however affect cargo flights that are normally flown by carriers such as Kenya Airways (KQ) and Emirates airline from UEA into Kenya.

“Kenya shall do a NOTAM lifting the suspension of flights to and from UAE from midnight tonight (Monday),’’ said Gilbert Kibe Director-General Kenya Civil Aviation Authority (KCAA).

The ban came a few days after UAE extended the Kenya flight ban after it established that travellers from Nairobi were testing positive for Covid-19 after arrival in the Middle East nation, despite carrying negative test results.

Kibe said the scheme involved a racket of private medical testing centres that colluded with travellers to issue fake Covid-19 PCR results to aid their travel.

The Ministry of Health has however launched investigations into the matter with a view to bringing to book health officials who were involved in the shoddy deal that has now coasted Kenya millions of shillings in lost passenger revenues.

Business

Bralirwa Shares Trading Badly On Rwanda Stock Exchange

Published

5 days ago

January 21, 2022

Staff Writer

Since the just concluded festive season, Rwanda’s largest brewer has not been in good books with its clients as retailers repeatedly complain of lack of some products and sometimes rationing of beers.

“It is very hard to get grand Primus beers. Every time I send someone to get them from the depot we are told that distributors haven’t supplied,” says Christine Nyiramariza a bar owner in Gatsibo district.

Trending on twitter is a very confusing situation of Amstel beer filled in Mutzig bottles.

According to Rwanda Stock Exchange, as of Friday, the value of Bralirwa share had dropped to Rwf124.

Business

Equity Bank Gets £37m From British Agency To Lend SMEs

Published

6 days ago

January 20, 2022

Staff Writer

UK’s Minister for Africa, Vicky Ford MP (pictured above) said his government was extending a total of £37 million to Equity Bank Kenya for onward lending to small businesses.

“Our economic partnership is delivering impressive results, and we have some ambitious, exciting plans for the future. Plans that will deliver for Kenya, and for the UK, long into our shared future,” she said.

This money is being channeled through UK’s development finance institution British International Investment (BII) – formerly known as CDC Group. BII is a key part of the UK government’s wider plans to mobilise up to £8 billion a year of public and private sector investment in international projects by 2025.

This will include BII partnering with capital markets and sovereign wealth funds to scale up financing and help the private sector move in.

BII will prioritise sustainable infrastructure investment to provide clean, honest and reliable financing and avoid low and middle-income countries being left with bad and unsustainable debt.

Ford also stated that the UK will increase its support for green manufacturing in Kenya by providing an additional £400,000 to help Kenya build a green manufacturing industry, increasing its support to the Ministry of Trade and the wider Kenyan manufacturing sector in this area.

Green manufacturing was highlighted by President Kenyatta at COP26 as a key opportunity for Kenya to create new green jobs.

The funding through the UK’s Manufacturing Africa programme will provide expert analysis and advice on how government policy and the organised private sector can help build this industry and create new green jobs for Kenyans.

Kenya is already the third biggest portfolio for BII, with Sh42 billion investments across 83 companies. Those companies support 36,350 jobs and pay Sh2.6 billion in taxes.

“This is how we will deliver world-class projects, characterised by high standards and outstanding expertise, without forcing huge new debts onto countries such as Kenya,” she said.