Local car assemblers get more concessions in bid to boost sales

Workers at a Volkswagen production line at the Kenya Vehicles Manufactures (KVM) in Thika, Kiambu County. PHOTO | DIANA NGILA | NMG

Local motor vehicle assemblers have been handed further concessions that are expected to improve a government plan to exempt locally assembled passenger cars from VAT and excise taxes and reduce prices of the automobiles.

The Finance and Planning Committee of the National Assembly proposes to further free up assemblers who qualify for the tax incentives from a requirement compelling them to source at least thirty percent of spare parts locally.

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