Finance Bill 2024: Motorists to pay up to Sh100,000 motor vehicle tax
By Barack Oduor |
The Bill proposes that 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.
Kenyans owning motor vehicles are likely to dig deep into their pockets after the Finance Bill 2024 proposed the introduction of a Motor Vehicle Tax, with a rate of 2.5 per cent of the vehicle's value.
The Bill proposes that 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.
Keep reading
The Bill indicates that the calculation for the charges would be based on the make, model, engine capacity and year of manufacture of the vehicle.
Further, an insurance company that insures a motor vehicle should collect and remit the motor vehicle tax within five days after issuing an insurance cover.
Insurance companies and their affiliates are warned that should they fail to collect and remit the motor vehicle tax, then they shall be liable to pay the penalty equivalent to 50 per cent of the uncollected tax and the actual amount of the uncollected tax.
There are, however, motor vehicles that are exempted from paying the new levies.
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 as a result of 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 indicated.
President William Ruto has been keen on raising revenue to finance its ambitious projects like the Affordable Housing Programme.
The new proposals to raise revenue in the Bill are likely to spark off a showdown between the government-allied lawmakers and those from the opposition who have repeatedly called on the president to consider lowering taxes for Kenyans.
Reader comments
Follow Us and Stay Connected!
We'd love for you to join our community and stay updated with our latest stories and updates. Follow us on our social media channels and be part of the conversation!
Let's stay connected and keep the dialogue going!
Latest News For You
