Motorcycle prices to go up
05 August 2013, 10:17
Nairobi - A new tax levy has been imposed on locally assembled motorcycle parts that is feared will make the bikes more expensive and slow down the industrialisation process.
In a bid to encourage local assembling of bikes to save foreign exchange and create jobs, the assemblers until last month enjoyed a 15 per cent tax waiver on imported motorbike parts, commonly known as completely knocked down kits (CKD) Business Daily reports.
Now the assemblers will be forced to pay the full 25 per cent tax to import spare parts, which is the equivalent of duty paid for finished motorcycles under the customs union protocol, thus making the bikes expensive.
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