It’s good news for second hand cars importers after government suspended
the move to cap the age limit for imported second-hand cars at five years from the current 8.
Trade CS Peter Munya has now said the cap was a just proposal while appearing before the Trade and Industries committee of the National Assembly.
“It is still in its draft form and yet to undergo public participation,” he said.
This was after the legislators aired concerns that the ministry was making policies without involving them.
They even termed CS Munya’s pronouncement as roadside declaration.
He however assured the lawmakers that the status quo remains until all stakeholders are involved and the policy is passed in Parliament.
Early this year, the government had announced plans to reduce the age limit of second-hand cars imported into the country from eight to fives years.
This new regulation was expected to take effect beginning July, 2019 in a gradual plan to rid the country of used vehicles.
“People who would want to purchase cars with bigger engine capacities will have to pay more because they will only be allowed to bring in the newer 5-year-old vehicles,” Munya said then.
According to the CS, the age limit ceiling for second-hand vehicles will be on a gradual reduction series so that only brand new vehicles will be allowed in the country by 2022.
The new law was seen as part of the government’s strategy to ignite and sustain local manufacturing of vehicles.
“Those who will need the fuel guzzlers need to have the financial muscle to get newer cars. Otherwise they will have to settle for smaller cars as we explore options of having locally assembled vehicles,” added Munya.
In 2016 Parliament amended the Excise Duty Bill, 2015 which saw increased taxation of second-hand cars from overseas.