Issue 08: Un-harmonized Domestic Taxes (excise tax, VAT & income tax)
Challenge: EABC Baseline Survey on Customs & Domestic Taxes demonstrated that on domestic taxes; EAC Partner States impose discriminatory internal taxes (domestic taxes), levies and other charges on goods transfer to their country. There is near convergence on corporate tax rate and Value Added Taxes (VAT) rate but wider disparities on Excise Taxes and taxes on income
Members Affected: Manufacturers & Service sector
Status Update: EABC held a consultative Meeting on 30th – 31st Oct. 2019 to harmonize Policy Proposals on Customs and Domestic Taxes. The proposals were submitted to EAC Secretariat.