Upon importing a used car or purchasing one from any dealer, one has to use the red 'KG' plate until the licence plates are issued.
Now KRA in its effort to net more tax has, and it has been successful so far, has started enforcing some laws that were ignored for quite some time. To buy a used car, make sure you get one from a licenced dealer or individual by the Registrar of Motor Vehicles which is an arm of KRA. This is under the little known and applied Second Hand Motor Vehicles Purchase Tax Cap 484 sec 4(1) of Kenya's Law.
They have also set their eyes on gar garages where repairs are done. They also have to be registered by the ROM and have a Dealer's General Licence for 'KG' plates under Traffic Act cap 403 sec 23-29.
Now the reality of KRA hitting the Ksh409B in the next financial year doesnt seen to be farfetched.
KRA can net more tax,i guess even double their estimated catch if they want.I think if there are/is loopholes in tax collections its not because we dont have adequate measures or laws to do it but because of our kind of politics,most of the laws have been'silent' and or non exsistance.I say kudos to KRA on this effort.
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