KRA told to respond in import duty case
Imported vehicles leaving the port of Mombasa. KRA has been given two weeks to respond to a case in which car importers are challenging a method used to calculate the import duty payable on used vehicles. FILE PHOTO | NATION MEDIA GROUP
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The judge also directed the Car Importers Association of Kenya to file and serve its further affidavits within seven days upon getting a response from KRA.
Through lawyer Gikandi Ngibuini, the importers said the new charges are oppressive and unreasonable.
The Kenya Revenue Authority (KRA) has been given two weeks to respond to a case in which car importers are challenging a method used to calculate the import duty payable on used vehicles.
The judge also directed the Car Importers Association of Kenya to file and serve its further affidavits within seven days upon getting a response from KRA.
Through lawyer Pius Nyaga, KRA told the court they were served with suit papers on Friday and were, therefore, unable to file their response on time.
KRA currently uses a revised Current Retail Selling Price (CRSP), which became effective on February 5.
According to the importers, who have filed the petition at the High Court in Mombasa, KRA can only alter the CRSP values published in September last year after public participation.
INCREASE COST
The association argued that the new rates have led to an increase in the cost of used cars by more than 50 per cent. The importers wanted the court to declare the new rates null and void because they were not subjected to public participation.
According to the petitioner, importers have always paid a CRSP value of Sh14.4 million for imported used Toyota Land Cruiser V8, but KRA has demanded Sh17.9 million for a similar vehicle being imported by one of its members.
They said the continued holding of the vehicle while the importer has paid the required duty is a violation of his rights.
OPPRESSIVE
Through lawyer Gikandi Ngibuini, the importers said the new charges are oppressive and unreasonable.
“The CRSP values imposed by KRA threaten car importation businesses and put importers’ livelihoods at risk as the charges are unreasonably high,” the petition stated.
According to the importers, on January 30, they wrote a letter to KRA to suspend the new rates to allow for deliberations, but the agency has never responded.
“Even though in the stakeholders’ meetings KRA were directed to hold meetings with the association so as to resolve the CRSP issues, it has always been reluctant to do so,” the petition stated.
The case will be heard on September 18.
