- The High Court has frozen KRA’s new tax valuation for used cars that was to start on July 1.
- A petitioner claims the new pricing system lacked public input and transparency.
- The changes risk unfairly taxing vehicles already ordered under the old rates.
- Hearing is set for July 17 as legal questions mount over KRA’s process.
Just hours before KRA’s new vehicle valuation list was to kick in, the High Court pressed pause. The ruling came after a petition was filed raising serious questions about how the revised Current Retail Selling Price (CRSP) schedule had been introduced.
At the heart of the case is whether KRA followed the rules of fair decision-making. The petitioner claims there was no genuine public participation—just meetings with vehicle dealers. Consumers, car buyers, and the general public were left out, the court was told.
The petitioner also argues that the CRSP list should have been tabled in Parliament. According to them, it qualifies as a statutory instrument under law and skipping that process breaches Article 94(6) of the Constitution.
Another concern is the 30-day notice between the public notice and enforcement. Critics say this was far too short, especially in a sector where importing a car can take up to six months. The timing, they argue, could leave importers stuck with higher taxes on cars bought under previous rules.
Besides the process, there’s also an issue with the content. The new CRSP sheet, according to the case, is full of inconsistencies—some models are missing, features are mismatched, and similar cars carry different values. Even fuel types and chassis numbers are reportedly wrong in some entries.
The judge has stopped the CRSP rollout until July 17. Meanwhile, KRA has been ordered to respond, and all parties are expected in court for the hearing. As things stand, importers can still use the 2019 CRSP schedule—for now.
