Imports to the East African Community (EAC) are now set to attract a maximum tax of 35 per cent after all partner states settled on the Common External Tariff (CET) on fourth band products.
Goods in this band include dairy and meat products, cereals, cotton and textiles, iron and steel, edible oils and alcoholic beverages. Others include furniture, leather products, fresh-cut flowers, fruits, nuts, sugar and confectionery, coffee, tea, spices, headgear, ceramic products, and paints.
In a meeting chaired by Kenya’s Trade Cabinet Secretary Betty Maina, who is also the chairperson EAC Council, all the six EAC partner States reached a consensus that the 35 per cent tax will be levied effective July 1, 2022.
As a result, Burundi, Kenya, Rwanda, South Sudan, Uganda and Tanzania will slap importers with higher tariffs on the affected goods. The levy to be imposed on imported finished products from non-member states is expected to stimulate local production and industrialization.
“The move is set to spur intra-regional trade by encouraging local manufacturing, value addition and industrialisation,” the East African Community Secretary-General Dr Peter Mathuki as quoted by a local newspaper.
The new levy is higher than the 30 or 33 per cent tariff that was earlier proposed by the Partner States.
Read also; EAC Plans to Double its Fruit & Vegetable Exports to $900 Million.
