Insurers face compliance headache on car tax plan

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Insurance firms have warned of compliance headaches on the Treasury's proposed annual tax on motor vehicles given that customers renew covers at different times of the year.

The Association of Kenya Insurers (AKI), the lobby for underwriters, said the proposal to make its members the collecting agents of 2.5 percent tax on the value of vehicles will mean collecting and remitting the deductions to Kenya Revenue Authority (KRA) nearly every day.

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