Why Govt Raised Taxes On Used Cars 13-JULY-2016 opinion By Appolonia Uwanziga.
Are you planning to buy a used car?
Well, you will have to dig deeper into your pockets with the impending implementation of a new tax policy on used imported vehicles.
Raphael Tugirumuremyi, the commissioner for customs at Rwanda Revenue Authority, said the law seeks to discourage importation of used cars and help cut on carbon emissions.
Tugirumuremyi said the policy targets all categories of used vehicles that are more than one year old, adding that vehicles with high depreciation, will attract high levy.
"The policy does not have a fixed tax rate because the levy is calculated depending on the value of the vehicle and rate of depreciation," he said.
The policy, which will come into force in April, is jointly implemented with other East African Community member countries.
It was initially scheduled for implementation in September last year, but was postponed to allow for sensitisation of sector stakeholders.