News
Port Holds 6000 Cars Due To Logbook Shortage
After a new directive was issued by the taxman needing that imported vehicles are fully registered and issued with a logbook before being released. This has left 6000 second-hand cars stuck at the port in Mombasa. This new rule has been implemented to tighten the ongoing fight against tax evasion.
Before hand, the only requirement for cars to be get cleared at the port were National Transport and Safety Authority (NTSA)- issued electronic stickers and number plate registration.
The delays in the processing and production of logbooks in line with the KRA directive has seen importers of cars suffer losses as much as millions that could spill over to cause higher customer prices. “We are experiencing delays in releasing vehicles due to the fact that the process of printing and signing of the logbooks takes a lot of time, hence putting importers in the same problem of paying extra demur rages (storage charges) due to this process,” said the Car Importers Association of Kenya (CIAK) national vice chairman M. Farooq in a letter addressed to KRA’s commissioner of custom services.
“We would like to request your good office to allow us release the said vehicles on production of an e-sticker and the registration number to save us from the great losses due to unforeseen delays that are beyond our control,” says the letter dated March 14 and which is also copied to NTSA. The car dealers say the delays have pushed them into a cash flow crisis since some are servicing loans. and in addition the shortage of registration number plates has added to the delay in clearance.
