JkMwatha wrote:Tebes wrote:@JKmwatha,
How do you get the customs value, do you depreciate CRSP before removing taxation and mark-up or after?
@Tebes
the custom value is the value after depreciation
The total taxes are as follows
Import duty : CIF price x 25%
Excise duty : (CIF price + Import duty) x 20%
VAT : (CIF price + Import duty + Excise duty) x 16%Thats how you get the final figure. Does it make sense?
I get the feeling
KRA try to make it as complicated as possible.
Actually, they try to make it as FAIR as possible... then the calculation becomes complicated.
Fair because, the depreciation is done after the taxes in the CRSP are removed - that avoids double taxation.
Thus the procedure is:
1] Determine CRSP
2] Remove import duty and tax component from CRSP to get the Current C&F value
3] Depreciate the current C&F value by 10% per year to get the taxable C&F value
4] Use the taxable C&F value to calculate the taxes - the taxes are compounded on each other as required by the law [not a KRA rule]
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.