Businesses in the region are pushing for the East African Community (EAC)’s Common External Tariff (CET) to be wholly capped at 32.5%.
This is one of the agendas set to be presented at the heads of state summit later this month, alongside deliberation on DRC and Ethiopia’s intentions to join the regional block.
The external tariff’s main intention is to protect businesses from unregulated imports. The rate of the tariff has been disputed for quite some time, with Kenya insisting it be capped at 35%.
The CET has also been delayed owing to the fact that countries like Uganda and Tanzania initially asked for time to evaluate the impact of the tariff on their businesses.
The CET comprises of a triple band structure where raw materials and capital goods traded among East African countries do not attract any tax. However, intermediate goods attract 10% while final goods attract 25% tax.