In Rwanda, the government has decided to increase taxes on imported used cars. This news is obviously not good for the operators of the sector, nor for the buyers who will certainly pay the high price to acquire a car.
Lower imports of second-hand cars
This is the objective of the Rwandan government, which finds that these cars, which are imported in large quantities, emit polluting gases that destroy the environment. Thus, any used imported and heavily used vehicle of more than one year of age, will pay a higher taxes. This measure is in fact a decision of the sub-region, which would like to harmonize on the policy of importing second-hand vehicles.
As another consequence of this measure, vehicles over 10 years of age will pay depreciation taxes of 80% against only 20% for new vehicles. Other customs duties and import charges will be applied based on the date of manufacture and the value of the vehicle.
Notices from Rwandan importers
One can guess that these restrictions are not favorable to importers who think for some to withdraw from business. Those who have already bought their cars, taking into account the old import measures, are likely to suffer enormous losses because of this increase in taxes. However, some importers are aware that Rwanda will not always be the bin of Europe and encourage the state in his concern about the environment and the development of the country.
The increase in taxes on imported used cars is not the last one, as another would aim in the near future for vehicle gas emissions. New car dealers will also have to make concessions and lower prices to try to reach as many potential customers as possible.
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