Nduva Warns: Tax Application Delays Are Distorting Intra-EAC Trade

The East African Community Secretariat has cautioned the private sector in partner states against frequent requests for stay of application of tax on products that are readily available in the region.

Speaking during the Kenya Private Sector Alliance (Kepsa)-EAC Secretary-General Roundtable in Nairobi on Wednesday, EAC boss Veronica Nduva said the stays were distorting trade within the region.

The existence of numerous stays of application and countries’ duty remission is an impediment to the intra-EAC trade, she said, as the finished products that benefit from these measures cannot access the regional market at preferential tariff treatment.

This is due to the fact that all finished products that benefit from a country’s duty remission once sold in the EAC Customs Territory attract duties, levies and other charges provided in the EAC Common External Tariff (CET).

“Partner states are still requesting stays of application. This has meant that we have a distortion to the common instruments (of the CET) that were adopted by all partner states,” Ms Nduva said.