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Meat, alcohol, sugar prices increase on new EAC tax

Prices of popular commodities such as dairy products, meat, alcohol, grains, cotton and textiles imported into East Africa are expected to increase significantly after the new tariffs took effect yesterday.

In an agreement reached on 5 May 2022 by the partner countries of the East African Community (EAC), the general external tariff on imports into the bloc was increased to 35% from 1 July 2022.

Tariffs are imposed on finished products imported from third countries as part of a strategy to stimulate local production and industrialization.

Taxes affecting a group of taxes on products also include; iron and steel, cooking oil, furniture, leather goods and fresh cut flowers.

Other items in the increased CET (CET) bracket include fruit, nuts, sugar and confectionery, coffee, tea, spices, hats, ceramic products and paintings, with other types.

This means that product imports into Burundi, Kenya, Rwanda, South Sudan, Uganda, Tanzania and the Republic of Congo will now cost more than yesterday.

The Kenya Tax Authority (KRA) has informed importers of the changes and urged them to incorporate them into their tax transactions.

“The Kenya Tax Service wishes to draw the attention of taxpayers and the public to the recent changes to the Harmonized Commodity Description and Coding System (HS) and the East African Community Tariff for General Foreign Affairs (EAC CET)" High Commissioner for Customs and Border Control, appointing Lilian Nyawanda in a circle

The new tariffs are higher than the 30 or 33% tariffs previously offered by the EAC Partner Countries.

The May Agreement dealing with the implementation of the EAC CET, commenced in 2005 after the entry into force of the Customs Union Protocol EAC.

However, the EAC Council of Ministers, the bloc's key decision-making body, agreed on flexibility in implementing the revised CET, particularly for products currently affected by the practice. global economy.

Article 12 of the Customs Union Protocol EAC establishes a three-band CET with a minimum rate of 0% for raw materials and capital goods, 10% for intermediate goods and 25% for goods. finished product.

In addition, certain products considered to be of economic importance to the partner countries are subject to tax rates above 25%, including sugar, wheat, dairy, textile products, corn, rice and tobacco.

Content created and supplied by: edubouy (via Opera News )

EAC East Africa


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