Tax computation on imported non-utility motor vehicles

[Biohazard]

Hii ni namna unavyoweza kukokotoa gharama za kodi endapo umeagizia gari.
Exclusively other costs kama

• Clearing and forwarding agent
• Car registration and license
• Shipping line charge and Port Charge
• Insurance

Hizo zenye red ni gharama za kufikia. pia car registration huwa inafanyika na maagent.
Summery ya hizo cost ni

Below 10 years	0-1000	48%
Below 10 years	1001-1999	55%
Below 10 years	2000-and above	62%
More than 10 years	0-1000	77%
More than 10 years	1001-1999	86%
More than 10 years	2000-and above	95%

link yake ni Car Import Taxes - GariYangu.Com

TAX COMPUTATION ON IMPORTED NON-UTILITY MOTOR VEHICLES​

A. For non-utility vehicles of less than ten years old from the year of manufacture.
Illustration 1

Imported non-utility vehicles with engine capacity between 0-1000 cc. The computation of duties and taxes will be based on the applicable rates as follows: -Import duty ……………..25%
-Excise duty ………………0%
-VAT………………………18%

Example

Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is TZS 1300 per USD). The Calculation will be as follows:

Duty/Tax Type	Computation	Duty/Tax payable
a) Import duty	In order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD USD 625 x TZS 1300 = TZS 812,500	TZS 812,500
b) Excise duty	In order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (0%). USD 2500 + USD 625 =USD 3125 USD 3125 X 0% = USD 0 USD 0 X TZS 1300 = TZS 0	TZS 0
c) Value Added Tax (VAT)​	In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%) USD 2500 + USD 625 +USD 0 =USD 3125 USD 3125 X 18% = USD 562.5 USD 562.5 X TZS 1300 = TZS 731,250	TZS 731,250
Total Duty & Tax Payable	Import Duty + Excise Duty + VAT	TZS 1,543,750

Illustration 2

Imported non-utility vehicles with engine capacity between1000-1500 cc. The computation of duties and taxes will be based on the applicable rates as follows:
-Import duty ……………..25%
-Excise duty ………………5%
-VAT………………………18%


Example

Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is TZS 1300 per USD). The Calculation will be as follows:

Duty/Tax Type	Computation	Duty/Tax payable
a) Import duty	In order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD USD 625 x TZS 1300 = TZS 812,500	TZS 812,500
b) Excise duty	In order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (5%). USD 2500 + USD 625 =USD 3125 USD 3125 X 5% = USD 156.25 USD 156.25 X TZS 1300 = TZS 203,125	TZS 203,125
c) Value Added Tax (VAT)​	In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%) USD 2500 + USD 625 +USD 156.25 =USD 3281.25 USD 3281.25 X 18% = USD 590.63 USD 590.63 X TZS 1300 = TZS 767,819	TZS 767,819
Total Duty & Tax Payable	Import Duty + Excise Duty + VAT	TZS 1,783,444

Illustration 3

Imported non-utility vehicles with engine capacity over 1500 cc. The computation of duties and taxes will be based on the applicable rates as follows:
-Import duty ……………..25%
-Excise duty …………….10%
-VAT…………………… 18%

Example

Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is TZS 1300 per USD). The Calculation will be as follows:

Duty/Tax Type	Computation	Duty/Tax payable
a) Import duty	In order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD USD 625 x TZS 1300 = TZS 812,500	TZS 812,500
b) Excise duty	In order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (10%). USD 2500 + USD 625 =USD 3125 USD 3125 X 10% = USD 312.5 USD 312.5 X TZS 1300 = TZS 406,250	TZS 406,250
c) Value Added Tax (VAT)​	In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%) USD 2500 + USD 625 +USD 312.5 =USD 3437.5 USD 3437.5 X 18% = USD 618.75 USD 618.75 X TZS 1300 = TZS 804,375	TZS 804,375
Total Duty & Tax Payable	Import Duty + Excise Duty + VAT	TZS 2,023,125

B. For vehicles of more than ten years from the year of manufacture. Illustration 1
Imported non-utility vehicles with engine capacity between 0-1000 cc. The computation of duties and taxes will be based on the applicable rates as follows:
-Import duty …………………………………………25%
-Excise duty on cubic capacity…………………… 0%
-Excise duty on age ……………….. …………… 20%
-VAT………………………………….………………18%
Example Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is TZS 1300 per USD). The Calculation will be as follows:

Duty/Tax Type	Computation	Duty/Tax payable
a) Import duty	In order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD USD 625 x TZS 1300 = TZS 812,500	TZS 812,500
b) Excise duty	In order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (0% on cubic capacity and 20% on age). Excise duty on cubic capacity: USD 2500 + USD 625 =USD 3125 USD 3125 X 0% = USD 0 USD 0 X TZS 1300 = TZS 0 Excise duty on age: USD 2500 + USD 625 =USD 3125 USD 3125 X 20% = USD 625 USD 625 X TZS 1300 = TZS 812,500	TZS 812,500
c) Value Added Tax (VAT)​	In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%) USD 2500 + USD 625 +USD 0 + USD 625 =USD 3750 USD 3750 X 18% = USD 675 USD 675 X TZS 1300 = TZS 877,500	TZS 877,500
Total Duty & Tax Payable	Import Duty + Excise Duty + VAT	TZS 2,502,500

Illustration 2
Imported non-utility vehicles with engine capacity between 1000-1500 cc. The computation of duties and taxes will be based on the applicable rates as follows:
-Import duty …………………………………………25%
-Excise duty on cubic capacity…………………… 5%
-Excise duty on age ……………….. …………… 20%
-VAT………………………………….………………18%

Example
Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is TZS 1300 per USD). The Calculation will be as follows:

Duty/Tax Type	Computation	Duty/Tax payable
a) Import duty	In order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD USD 625 x TZS 1300 = TZS 812,500	TZS 812,500
b) Excise duty	In order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (5% on cubic capacity and 20% on age). Excise duty on cubic capacity: USD 2500 + USD 625 =USD 3125 USD 3125 X 5% = USD 156.25 USD 156.25 X TZS 1300 = TZS 203,125 Excise duty on age: USD 2500 + USD 625 =USD 3125 USD 3125 X 20% = USD 625 USD 625 X TZS 1300 = TZS 812,500	TZS 1,015,625
c) Value Added Tax (VAT)​	In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%) USD 2500 + USD 625 +USD 156.25 + USD 625 =USD 3906.25 USD 3906.25 X 18% = USD 703.13 USD 703.13 X TZS 1300 = TZS 914,069	TZS 914,069
Total Duty & Tax Payable	Import Duty + Excise Duty + VAT	TZS 2,742,194

Illustration 3
Imported non-utility vehicles with engine capacity over 1500 cc . The computation of duties and taxes will be based on the applicable rates as follows: -Import duty …………………………………………25%
-Excise duty on cubic capacity…………………… 10%
-Excise duty on age ……………….. …………… 20%
-VAT………………………………….………………18%
Example Imported non-utility vehicle with CIF value of USD 2500 on arrival in Tanzania (Assume the exchange rate is TZS 1300 per USD). The Calculation will be as follows:

Duty/Tax Type	Computation	Duty/Tax payable
a) Import duty	In order to obtain import duty to be paid, take the certified customs value and multiply by the import duty rate (25%) USD 2500 x 25% =625 USD USD 625 x TZS 1300 = TZS 812,500	TZS 812,500
b) Excise duty	In order to obtain excise duty value, take the certified customs value plus import duty calculated in (a). Then multiply by the excise duty rate (10% on cubic capacity and 20% on age). Excise duty on cubic capacity: USD 2500 + USD 625 =USD 3125 USD 3125 X 10% = USD 312.5 USD 312.5 X TZS 1300 = TZS 406,250 Excise duty on age: USD 2500 + USD 625 =USD 3125 USD 3125 X 20% = USD 625 USD 625 X TZS 1300 = TZS 812,500	TZS 1,218,750
c) Value Added Tax (VAT)​	In order to get the value of VAT, take the certified customs value and add to it the import duty and the excise duty calculated in (b). Then multiply by the VAT rate (18%) USD 2500 + USD 625 +USD 312.5 + USD 625 =USD 4062.5 USD 4062.5 X 18% = USD 731.25 USD 731.25 X TZS 1300 = TZS 950,625	TZS 950,625
Total Duty & Tax Payable	Import Duty + Excise Duty + VAT	TZS 2,981,875

Note: 1) Non -Utility vehicles means luxurious vehicles imported solely for private use that is not for public or commercial use.

2) Customs value is the value approved by Customs as taxable value of the imported goods.



View attachment Motor Vehicle Tax Computation.doc

 

[Bigirita]

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shule ya ukwel

 

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