Assembled motor vehicles now welcome in Dar, tax free

Mobius, Kenya's first low cost car. Regional auto assembly plants can now fully enter the Tanzanian market. PHOTO | COURTESY

Regional auto assembly plants can now fully enter the Tanzanian market after the lapse of an East African Community October deadline for Dar to lift a 30 per cent excise duty on locally assembled vehicles.

Previously, Tanzania had complained of some partner states breaching the rules of origin by allowing vehicle assembly firms to resell imports without any significant value addition. This led to the standoff that saw Dar tax these products despite their being zero rated.