EAC plan to raise revenue from fourth tax band faces headwinds

cargos

Cargo trucks from Tanzania ferrying tons of maize await offloading outside the Mombasa Maize Millers Factory in Kenya. PHOTO | KEVIN ODIT | NMG

East Africa’s plan to generate an additional $18.9 million worth of intra-regional trade from the revised Common External Tariffs (CET) is facing headwinds as partner states seek preferential tax treatment, putting implementation of the four-band tariff structure in jeopardy.

Last year, the EAC Secretariat underscored the enforcement of the 35 percent duty on finished products imported into the region, under a new tariff structure that took effect on July 1, 2022.