Press Center | Freight Shipping Logistics News
Feb 21, 2011
General
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The Kenya Revenue Authority (KRA) early this year directed road transport department officers to accept registration of trailers through the Simba 2005 system.
A new requirement from the taxman is causing delays in the registration of trailers.
The Kenya Revenue Authority (KRA) early this year directed road transport department officers to accept registration of trailers through the Simba 2005 system.
According to the directive issued on January 15, the necessary charges should be paid online, but trailer makers say the system has not been updated to cater for the new requirement.
The directive requires ex-GK, custom auctioned motor vehicles, ex-British Army vehicles and trailers to be registered through Simba 2005 before a logbook is issued.
Before the new requirement, manufacturers would pay advance tax and submit invoices of the purchased raw materials. A compliance certificate would be issued that allowed the manufacturer to obtain registration number and plate at Sh4,700.
Among the manufacturers affected by the new rules are Elite Trailers Limited, Hans Kenya, Ocean Engineering, Bhachu Engineering, Transtrailers Ltd, RT (East Africa) Ltd and Auto Continental Ltd.
Mr Mohammed Shiraz, the managing director of Ocean Engineering, said that for the last one and a half months, the company has not been able to register a single trailer.
“There are 34 trailers awaiting registration,” he said.
Manufacturers are experiencing registration delays because they do not have the Customs Entry Code and Import Declaration Form and they are not required to pay duty since most of their materials are sourced locally, said a letter to the motor vehicle registrar by Mr Jaspal Sagoo, one of the directors of Elite Trailers Limited.
An officer with the Kenya Revenue Authority admitted that the new directive had affected registration of new trailers.
“Discussions have started to have the registration revert to the earlier system until proper measures are put in place” said the officer who cannot be quoted because he is not authorised to speak to the Press.
The Kenya Revenue Authority (KRA) early this year directed road transport department officers to accept registration of trailers through the Simba 2005 system.
According to the directive issued on January 15, the necessary charges should be paid online, but trailer makers say the system has not been updated to cater for the new requirement.
The directive requires ex-GK, custom auctioned motor vehicles, ex-British Army vehicles and trailers to be registered through Simba 2005 before a logbook is issued.
Before the new requirement, manufacturers would pay advance tax and submit invoices of the purchased raw materials. A compliance certificate would be issued that allowed the manufacturer to obtain registration number and plate at Sh4,700.
Among the manufacturers affected by the new rules are Elite Trailers Limited, Hans Kenya, Ocean Engineering, Bhachu Engineering, Transtrailers Ltd, RT (East Africa) Ltd and Auto Continental Ltd.
Mr Mohammed Shiraz, the managing director of Ocean Engineering, said that for the last one and a half months, the company has not been able to register a single trailer.
“There are 34 trailers awaiting registration,” he said.
Manufacturers are experiencing registration delays because they do not have the Customs Entry Code and Import Declaration Form and they are not required to pay duty since most of their materials are sourced locally, said a letter to the motor vehicle registrar by Mr Jaspal Sagoo, one of the directors of Elite Trailers Limited.
An officer with the Kenya Revenue Authority admitted that the new directive had affected registration of new trailers.
“Discussions have started to have the registration revert to the earlier system until proper measures are put in place” said the officer who cannot be quoted because he is not authorised to speak to the Press.
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