Kazakh Customs responds to rumors of "tax increase": Electric vehicles are still exempt from import duties, but these fees will be charged

According to the latest statement by the State Revenue Committee (KGD), the national tax and customs authority of Kazakhstan, the recent news circulated on social media that "automobile import tariffs will be increased from July 1" is not true...

According to the latest statement of the State Revenue Committee (KGD), the national tax and customs authority of Kazakhstan, the news recently circulated on social media that "automobile import tariffs will be increased from July 1" is not true. At present, the tariff policy on imported automobiles by individuals has not been adjusted and is still implemented in accordance with the Eurasian Economic Commission Resolution No. 107 of 2017.

Official clarity: import tariffs have not changed

KGD said that the current import tariffs on most gasoline and diesel vehicles are still 15% of the customs duty-paid value of the vehicle, which applies to new cars and vehicles less than 7 years old; for vehicles more than 7 years old, tariffs continue to be levied based on engine displacement rather than based on vehicle price.

This means that the recent market worry about the "increase in customs clearance costs for imported vehicles starting July 1" has not occurred. Previously, as some importers and private car dealers were worried about policy changes, the market once had a wait-and-see attitude. The official statement also stabilized expectations for the market.

Electric vehicles still enjoy zero tariffs, but import costs are not "zero"

KGD also emphasized that pure electric vehicles and extended-range electric vehicles (EREV) will continue to enjoy zero import tariff treatment. However, the importer still has to bear other legal fees, including:

Customs declaration fee: 25,950 tenge (6 MCI);

Value-added tax (VAT): levied at 16% of the duty-paid value of the vehicle;

Utilization Fee;

First vehicle registration fee;

Driving license (technical certificate) processing fee;

Fees for making and issuing motor vehicle license plates.

In addition, vehicles with a displacement of more than 3.0 liters (3000cc) are subject to consumption tax, with a standard of 100 tenge per cubic centimeter; if the vehicle value exceeds 77.85 million tenge (approximately equivalent to 18000 MCI), an additional 10% special consumption tax will be required.

In other words, although the import tariff on electric vehicles is still zero, the overall import cost is still composed of multiple taxes and fees.

There is still a differential tax issue after import and resale to other Eurasian Economic Union countries

KGD also reminded that Kazakhstan still implements two sets of vehicle customs clearance models.

If the vehicle is cleared at the preferential domestic tax rate in Kazakhstan and subsequently re-exported to other Eurasian Economic Union (EAEU) member states, the owner or operator will need to pay the difference between the unified tariff and the Eurasian Economic Union.

At the same time, first-time registered vehicles must also meet current safety standards, including: emission standards no lower than Euro 4; equipped with ABS anti-lock systems and air bags; equipped with SOS emergency call systems; equipped with ISOFIX child safety seat interface; Equipped with daytime running lights. These requirements are still necessary for the first registration of imported vehicles.

written in the end

The biggest significance of this official banishment of rumors is that it stabilizes market expectations-Kazakhstan did not increase automobile import tariffs on July 1, and the current tax and fee system remains unchanged. However, what really determines the import cost is not only the 15% tariff, but also includes value-added tax, scrapping recycling fees, registration fees and other links. In the future layout of the Kazakhstan market, more attention should be paid to the overall customs clearance costs and internal circulation rules of the Eurasian Economic Union, rather than simply focusing on tariff changes. For companies planning to use Kazakhstan as a market node in Central Asia, calculating the cost of the entire link in advance remains the key to controlling risks.

Source: Guangdong Good Car

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