A State requirement for used automobiles to be assigned registration quantity plates earlier than clearance and never when promoting them has led to a backlog of 6,000 used automobiles at numerous Container Freight Stations (CFS) in Mombasa.
Automotive Importers Affiliation of Kenya Chairman Peter Otieno says the rule has put importers at an obstacle as their automobiles take a number of months earlier than they are often offered in a market the place patrons choose automobiles with plates.
This, they stated, has pressured them to promote their automobiles at decrease costs or provide reductions between Sh50,000-Sh200,000 per unit on those who is probably not older however have been imported earlier, and don’t bear newest quantity plates.
Automotive patrons in Kenya have a tendency to love newly registered automobiles with some demanding particular numbers comparable to 001, 007, 010, 111, 222, 333, 555, 777, 999 and 786.
“This method is just not truthful to our members as a result of the truth that clients don’t purchase the motor automobiles however the brand new quantity plates due to this fact the one month or extra registered quantity plates are thought-about to be previous automobiles,” stated Mr Otieno in a latest letter to the Kenya Income Authority.
Mr Otieno desires the automobiles launched into the showroom from Container Freight Stations with out upfront registration.
He says that if the rule is abolished, a dealer who was importing 50 models monthly will now import between 75 to 125 models, a transfer that may also increase taxes on used motor automobiles.
He stated the importation of motor automobiles has additionally been diminished because of the unsuitable method of depreciation by 20 p.c, 25 p.c and 30 p.c but when taxation is completed, the relevant charges are 25 p.c and 30 p.c respectively.
Earlier than 2009, importers of second had automobiles have been allowed to clear imported used automobiles from the customs space with out quantity plates so long as they bore Kenya Storage quantity plates.
Nonetheless, the association was withdrawn in opposition to Ciak members however was left intact for the franchise sellers of imported new automobiles.