East African Community (EAC) partner states have failed to agree on the minimum excise duty to be levied on fuel, cigarettes, alcohol and non-alcoholic beverages with added sugar as part of a broader regional domestic tax harmonisation plan, prompting intervention by the International Monetary Fund (IMF).
The EAC member states have developed a policy to harmonise domestic taxes in the region, which was approved by the Council of Ministers in May 2019, but the process has been slower than expected, with some member countries fearing loss of revenues.
