Lack of consensus delaying common tax regime in EAC
Tanzania trucks loaded with goods from Kenya at Namanga border crossing. PHOTO | FILE
East African countries are dragging their feet on tax harmonisation because of concerns about tax sovereignty, failure to agree on a common excise policy, fear of losing revenue, and the difficulty of converging excise rates, given the differences in per capita income.
A study by PriceWaterhouseCoopers (PwC) on the impact of EAC excise tax harmonisation recommends that in order to move faster on the matter, the EAC partners need to focus on key areas including procedures and administration, classification rules and definitions and remission schemes.
