Car prices jump after Uhuru okays new tax

Imported second-hand cars in Mombasa. FILE PHOTO | NMG

Car prices have jumped by up to more than Sh1 million following the introduction of new taxes for motor vehicles with engine capacities exceeding 1.5 litres.

Excise duty, one of the biggest taxes levied on motor vehicle imports, increased up to 35 percent effective Thursday after President Uhuru Kenyatta signed the Finance Bill into law.

PAYE Tax Calculator

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