Car importers have challenged a method used to calculate the import duty payable on used vehicles.
Presently, Kenya Revenue Authority (KRA) is using a revised Current Retail Selling Price (CRSP), which became effective on February 5.
According to the Car Importers Association, which has filed the petition at the High Court in Mombasa, KRA may alter the CRSP values on its website or public portal published in September last year only after complying with the law regarding public participation.
The association said the published CRSP has led to an increase in the values of used by more than 50 per cent.
The importers want the current CRSP values for used imported vehicles declared null and void for lack of public involvement.
The petitioner also states that its members have always paid a CRSP value of Sh14.4 million for a Toyota Land Cruiser V8, but KRA is now demanding Sh17.9 million for the vehicle from one of its members. They say the continued holding of the vehicle while the importer has paid the required duty, is a violation of his rights.