EAC Excise Tax Harmonisation impact assessment study
The East African Community (EAC) is a regional organisation comprised of Kenya, Tanzania, Uganda, Burundi and Rwanda. The EAC aims primarily at widening and deepening the economic cooperation between the Partner States. Article 83(2)(e) of the 1999 Treaty establishing the EAC obliges the States to “harmonize their tax policies with a view to removing tax distortions in order to bring about a more efficient allocation of resources within the Community.” For this purpose, a Customs Union was established in 2005. The Customs Union Protocol, which was subsequently agreed to put emphasis on, among others;
• the removal of internal taxes and non-tariff barriers on intra-EAC trade,
• the introduction of a common external trade policy through the common external tariff, and
• the introduction of a list of sensitive products that are to be provided additional protection.
The implementation of the common market protocol from 1 July 2010 is a strong commitment to deepen and widen EAC integration.