The customs value of an imported car is Ksh 800,000. The following tax rates were applicable: Import duty 25%, excise duty 10% and VAT 16%. Determine the amount of VAT he paid.

Ushuru wa kuingiza ni 25% ya thamani ya gari.

$$\text{Ushuru wa kuingiza} = 25\% \times \text{Ksh } 800,000$$ $$\text{Ushuru wa kuingiza} = \frac{25}{100} \times 800,000$$ $$\text{Ushuru wa kuingiza} = \text{Ksh } 200,000$$

Ushuru wa bidhaa ni 10% ya thamani ya gari.

$$\text{Ushuru wa bidhaa} = 10\% \times \text{Ksh } 800,000$$ $$\text{Ushuru wa bidhaa} = \frac{10}{100} \times 800,000$$ $$\text{Ushuru wa bidhaa} = \text{Ksh } 80,000$$

Hii ni jumla ya thamani ya gari, ushuru wa kuingiza, na ushuru wa bidhaa.

$$\text{Thamani ya VAT} = \text{Ksh } 800,000 + \text{Ksh } 200,000 + \text{Ksh } 80,000$$ $$\text{Thamani ya VAT} = \text{Ksh } 1,080,000$$

VAT ni 16% ya thamani inayotozwa VAT.

$$\text{VAT} = 16\% \times \text{Ksh } 1,080,000$$ $$\text{VAT} = \frac{16}{100} \times 1,080,000$$ $$\text{VAT} = \text{Ksh } 172,800$$

Kiasi cha VAT alicholipa ni:

$$\text{Ksh } 172,800$$