Imported meat, dairy, alcoholic drinks to cost more as EAC agrees on 35pc common tariff
Shoppers at a local supermarket.
Imports to the East African Community (EAC) will now attract a maximum tax of 35 percent 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 are furniture, leather products, fresh-cut flowers, fruits, nuts, sugar and confectionery, coffee, tea, spices, head gears, ceramic products and paints, among others.
In the Mombasa meeting chaired by Kenya’s Trade Cabinet Secretary Betty Maina, who is also the chairperson EAC Council of Ministers, and held on May 5, all the six EAC partner States reached a consensus that the 35 percent tax will be levied effective July 1, 2022.
This means 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,” said EAC Secretary-General Dr Peter Mathuki.
The new levy is higher than the 30 or 33 percent tariff that was earlier proposed by Partner States.
The decision finally resolves the implementation of the EAC Common External Tariff which commenced in 2005 after the EAC Customs Union Protocol came into force.
Read the statement from the EAC Secretariat on the new CET below:
