The government targets to collect Sh58 billion from the motor vehicle circulation tax to be charged at 2.5 percent of the asset value payable at the time of issuance of insurance cover. The minimum amount payable has been set at Sh5,000 and capped at Sh100,000.
An insurer who fails to collect and remit the tax will be liable to a penalty equivalent to 50 percent of the uncollected tax, plus the actual amount of tax.
