State seeks to cut car prices with VAT, excise duty scrap

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

The government is set to exempt locally assembled passenger cars from VAT and excise taxes, a move that could see prices of the automobiles fall by hundreds of thousands of shillings.

This will see the cars exempt from the entire major taxes that are applicable on fully-built units imported from overseas markets like Japan, the UK, and South Africa.

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Note: The results are not exact but very close to the actual.