“Quality is never an accident; it is always the result of an intelligent effort.” – John Ruskin
When it comes to manufacturing premium quality cars, nothing can beat the good reputation of Japanese car companies. Aside from using high-end technology, the Japanese are known for their great sense of workmanship. Each Japanese car is made not just with innovative tools and equipment, but with a heart for craftsmanship as well.
As premium Japanese car models and makes flood car auctions by the week, the number of prospect buyers from Tanzania continue to escalate because of two factors: quality and cost-efficiency. Rather than buying brand new vehicles that are higher in price, it is definitely wiser to invest in slightly used vehicles sold at a lower price range.
If you are planning to buy a used car from Tanzania, you have to first research about your country’s car import rules and regulations so you can avoid unpleasant surprises along the way. For instance, when it comes to importing a used or a brand new car from Japan, you have to first compute your import taxes before clicking that “buy now” button.
Below is a tool you can use to calculate car import taxes imposed by Tanzania Revenue Authority. Just fill in all the necessary information about the car you are planning to import, and your tax will automatically pop out. Sounds great? Let’s get started!
Let’s Do the Math: How to Calculate Tanzania Revenue Authority Car Import Tax
Thanks to our plug-in, you can save valuable time, effort and energy in computing your car import taxes. However, if you still want to know how your car import taxes are computed, we have prepared a guide below.
- FOB (Free on Board): The actual cost of the imported vehicle before insurance, transport and inspection costs are added;
- CIF (Cost Insurance Freight): The sum of FOB, freight, insurance and inspection fees.
NOTE: In Tanzania, all imported vehicles must be insured and must undergo pre-shipment inspection. Otherwise, you will be penalized by the Tanzanian government. Pre-shipment inspection is also critical for all car buyers since it checks the car’s overall condition. If any part of the vehicle is not at par with the Tanzanian car regulations, the car must be fixed prior to shipment.
A Step-by-Step Guide on How to Calculate Tanzania Revenue Authority Car Import Tax
Disclaimer: the figures presented on this article do not represent the total cost and taxes of any vehicular model and make in our listing.
Calculating the overall cost of the vehicle you plan to import can be a daunting experience, especially if you do not have all the necessary information you need. To keep you guided, below is a systematic guide on calculating car import taxes in Tanzania:
1. Collect Data on the Vehicle
Firstly, choose a car model and make available in our listing. If you have already selected a vehicle from our site, list down all the necessary car information you need, including the following:
- Car make
- Car model
- Engine size
- Year of manufacture
- Model code
- Fuel type
For example, if you click on 2008 AT Toyota Passo KGC10 on our listing, you can see the car specifications on our page. Let’s list down the car details.
- Car make: Toyota
- Car model: Passo
- Engine size: 1,000 cc
- Year of manufacture: 2008/-
- Model code: KGC10
- Fuel type: Gasoline/petrol
- FOB: $353
2. Record the Vehicle’s CIF
After collecting important data on the vehicle, record the vehicle’s CIF by choosing a port of delivery or a country of destination. At CarUsed.Jp, we deliver pre-purchased vehicles at Dar Es Salaam, Tanzania. Let’s say the CIF of your chosen vehicle is $2,000.
3. Do the Conversion
Most of the prices you’ll see on online sites are in US dollars (USD). Since exchange rates change from time to time, it is always best that you use a calculator that can convert US dollars (USD) to Tanzanian Shillings (TZS).
In the like manner, since you are going to make payments and transactions via your local bank, you must also visit your bank to learn about their current exchange rate. Remember, exchange rates vary from one bank to another. Instead of relying on ballpark figures, talk to your bank representative so you can get a more accurate conversion.
In our example, let’s assume that 1 USD = 2,000 TZS. Hence, the CIF worth 2,000 USD amounts to 4,000,000 TZS.
4. Use Our Plug-In to Compute Car Import Tax in Tanzania
Once you click on our online calculator, you will see several required fields. Fill in the fields based on the information you collected above so you can see the overall car import tax you’d need to pay once you import your chosen vehicle.
All imported vehicles in Tanzania are subject to car import fees that are dependent on factors like age and engine capacity. To give you a clearer idea on how your taxes are computed, below is a guide on the car import taxation rules in Tanzania:
- Engine Capacity: Up to 2000 cc
Value Added Tax (VAT): 20%
Import Duty: 25%
Cumulatively, 50% of the vehicle’s dutiable value
- Engine Capacity: Above 2000 cc
- Value Added Tax (VAT): 20%
- Import Duty: 25%
- Excise Duty: 10%
- Cumulatively, 60% of the vehicle’s dutiable value
- Vehicles 8 Years or Over:
- Non-Utility Vehicles: 25%
- Utility Vehicles: 5%
- Excise Duty is dependent on the vehicle’s cylinder capacity and is charged as follows:
- Cylinder capacity up to 1000 cc: 0%
- Cylinder capacity over 1000 cc but under 2000 cc: 5%
- Cylinder capacity over 2000 cc: 10%
NOTE: Taxation rules on vehicles 8 years old and above apply to trucks and light cars, but not to machineries such as earth-moving equipment like bulldozers, grader and agricultural equipment. Trucks and light cars 8 years old and above attract an excise tax of 20%.
5. Compute the Total Port Costs
In Tanzania, the port cost you need to pay depends on the vehicle model and make.
6. Calculate the Overall Expenditures
Assuming that the car import tax is 4,000,000 TZS and the total port cost amounts to 1,000,000 TZS, below is the overall breakdown of the computation:
- CIF + Car Import Tax + Port Cost = Total Amount of the Imported Vehicle after Taxes
- 4,000,000 TZS + 4,000,000 + 1,000,000 = 9,000,000 TZS
7. Other Fees and Taxes
If you plan to import more than just one brand new or used vehicle from Japan, note that you’ll have to pay other fees and taxes for each vehicle. Typically, the import declaration fee is computed as follows:
- FOB (Free on Board) Price x 1.12 + $10
The resulting figure will then be multiplied by the number of vehicles you wish to import. Let’s get back to our example earlier. The FOB for 2008 AT Toyota Passo KGC10 is $353. If you plan to import three units of 2008 AT Toyota Passo, here’s how you need to compute for the other fees and taxes:
- $353 x 1.12 + $10 = $405.36
- $405.36 x 3 (number of units to be imported) = 1,216.08
- USD to TZS Conversion:
- 1,216.08 x 2,000 TZS = 2,432,160 TZS