Private sector meets to discuss harmonization of excise tax

Arusha, Tanzania, June 25, 2010. Businesses from five East African Community Partner States involved in trading of goods and services on which excise duty is levied will between June 29th and 30th, 2010 meet in Arusha, Tanzania to discuss ways on how to harmonize excise taxes in the region.

The meeting organized by East African Business Council will bring together manufacturers of soft drinks, tobacco industry, telecommunications, beer manufacturers, petroleum dealers, and dealers in edible oils among others.
The outcomes of the meeting will feed into the drafting of the East African Excise Management Bill. A committee of experts constituted to draft the East African Excise Management Act is currently carrying out consultations to incorporate in the Draft Customs Management Bill to be tabled before East African Legislative Assembly.

EAC this year successfully transited to a full-fledged Customs Union and is on course to begin implementing the Common Market in July 2010.

“The deepened integration presents immense opportunities for the business community, in terms of larger markets, economies of scale and larger pools of human, financial, and physical capital,” Ms Nderitu said. “It is therefore important that EAC Partner States harmonise domestic taxes to avoid any discriminatory effects that domestic rates may have on intra-regional trade.”

The meeting will therefore bring together private sector stakeholders with a view of coming up with common positions on how best excise duties can be harmonised within various sectors.

EAC Treaty commits Partner States to harmonise their tax policies with a view to remove tax distortions in order to bring about a more efficient allocation of resources within the Community. “Differences in domestic tax structures across States result in distortions which alter returns on investment and impact on investments,” Ms Nderitu said.

About EABC
East African Business Council (EABC) is a regional representative organization of private sector associations and corporates within the East African Community. Founded in 1997, EABC has since grown to play an increasingly significant role as a representative organization, addressing issues of importance to private sector in the EAC integration process.

For more information contact:
Godwin Muhwezi Bonge
Communications Officer
East African Business Council
P O Box 2617,
Arusha, Tanzania
Cell: +255 766196025
Website: www.eabc.info