Imported motorcycles costing Sh130,000 and above are set to become more expensive after National Treasury proposed raising customs duties on a two-tier system characterized by the current flat rate of Sh12,952 or a new proposed rate of 10 percent of unit value, whichever is higher.
The proposal to introduce the second option of imposing a 10 percent indirect duty is contained in the draft Finance Law for 2024, which is expected to be presented to Parliament this month for discussion and approval before the end of June.
“The First Schedule to the Excise Duty Act is amended by deleting…the rate corresponding to excise duty and replacing it with the following new description and rate corresponding to excise duty…the tariff is 10 per cent of value or Sh12,952.83 per unit whichever is higher,” the bill reads in part.