Car dealers should reassess pricing strategies, stocking on new tax rule

Second hand cars being offloaded from a Cargo Ship at the Port of Mombasa in this photo taken on July 7, 2021.

Photo credit: File | Nation Media Group

Customs valuation plays a critical role in international trade, serving as the basis upon which authorities determine the value of imports for taxation. To ensure fairness, clarity, and consistency in tax administration, the law prescribes six distinct valuation methods.

At the heart of these is the Transaction Value Method, which prioritises the actual price paid or payable for goods as declared by the importer.

PAYE Tax Calculator

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