On Tue, Jan 19, 2010 at 2:53 PM, Calvin Omari <calvinebarongo@gmail.com> wrote:
They will not be in business if they weren't, look at this scenario, This guys get a toyota vitz from japan or Thailand or wherever at 3000 USD i.e cost freight and insurance, and then they apy 16% vat of the value of which kra will decide (they are usually businesss alies and they give them very good rates I suspect 6%) plus other charges which makes a toal of around 60% of its original cost hence the car will cost 4800 USD and then they will sell it at 7300 USD a profit of 2500 USD another vehicle they still hire those cars awaiting sell at arate of 1500 KEs perday?????
It's not that simple. Taxation is not based on what you paid for the unit out there - anything could be written on the invoice. Heck, you could even get it for free. CIF is simply what you pay to get the car to the port. The actual Customs valuation is based on CRSP (Current ReSale Price) - value. It's a formula they use to determine the value of the car based on its specs and year of manufacture. They actually base their valuation on data from new-car dealers - basically if the vehicle was sold here new, what would it have cost? They take this value, depreciate it based on the age of the vehicle, and you have the customs valuation. Now add 16% VAT, then 20% excise duty, then 25% duty onto that. CRSP is roughly equivalent to what insurers use to determine the value of a vehicle too - you can't get comprehensive cover from any serious insurer without a valuation report. Another thing is that the importers do shield you from risk. Numerous people have been scammed - after sending money you can't ping the guy any more. Towards the end of the year is also tricky - they could send you a unit that's just going to be over the age limit by the time it lands - and you pay penalties - worse, get the car impounded. Remember the Interpol swoop where they netted dozens of units which were stolen out there then shipped here via Singapore? Then there's the pirates as well. BR, S -- Sent from my socks®