Car assemblers get new tax incentives in Bill

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Motor Vehicle Assembling at the Associated Vehicle Assemblers (AVA) Plant in Mombasa. FILE PHOTO | KEVIN ODIT | NMG

The government has proposed new tax cuts for motor vehicle assemblers, expanding the incentives that are designed to encourage local production.

The Finance Bill 2023 has provisions to halve the corporate tax rate from the standard 30 percent to 15 percent for companies starting new operations of putting together completely knocked down (CKD) parts at a local plant.

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