
EAC harmonises tax on alcohol, differ on fuel and tobacco
The East African Community (EAC) has agreed to harmonise excise duty to be levied on alcohol, amid a push by the International Monetary Fund.
But they disagreed on excise duties on tobacco and other nicotine products, non-alcoholic beverages, and fossil fuels.
The bloc is looking to create a more unified market, reduce smuggling and prevent distortions caused by differing excise duty rates.
The move approved by EAC Council of Ministers in 2019 but is yet to be fully implemented.
Currently, the EAC Tax Policy and Tax Administration Sub-Committee, with support from the IMF, is conducting harmonisation of excise duty on alcohol, tobacco, non-alcoholic beverages, and fossil fuels.'The IMF experts analysed the tax data submitted by the partner states and recommended a range of possible minimum rates for each product for consideration by the Tax Policy and Tax Administration,' said Frank J Dafa, Manager of Trade in Goods at the East African Business Council.
© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Khaleej Times
2 hours ago
- Khaleej Times
From containers to learning hubs: How DP World turns shipping steel into golf dreams
What do redundant shipping containers and young golfers have in common? Thanks to a bold new initiative from DP World, the answer might just be: a future full of possibilities. Known for moving thousands of containers across the globe every day, Dubai-based DP World has found a creative way to give some of those steel boxes a second life. Instead of retiring them, the company is transforming them into mobile 'Clubhouses' for aspiring young golfers. These custom-built hubs offer equipment, training tools, and safe spaces to play and grow your game. It's more than a nod to recycling. It's about opportunity. The first Clubhouse landed this week in Cape Town, South Africa, delivered in partnership with the Sally Little Golf Trust, an organisation that empowers young women through golf. The Trust teaches values like honesty, respect, perseverance, and self-motivation alongside swing mechanics. Each Clubhouse is tailored to the needs of its community. Some will house gear and training aids, and others will serve as gathering spaces or mini-learning centres. All will help bring golf to places where access to the sport is limited. "At DP World, we believe in creating opportunities to empower young people, as they are our future,' said Daniel van Otterdijk, the company's Chief Communications Officer. 'The Clubhouse initiative is a brilliant example of how we can use our resources and global sports partnerships to open doors for the next generation—bringing golf, and the life skills it teaches, to communities that might not otherwise have access. 'We're especially proud to have launched this programme in partnership with the Sally Little Golf Trust, whose incredible work empowering young women through golf aligns perfectly with our values,' he added. The Clubhouse programme builds on DP World's earlier success with the Second Life Container Initiative, which has already redistributed some 350,000 golf balls worldwide. Now, the goal is to scale even further. Future Clubhouses will roll out alongside major moments in the golf calendar, including the prestigious DP World Tour and the Ryder Cup at Bethpage Black in New York this September. It's all part of a broader effort to make golf more inclusive, accessible, and inspiring for the next generation of players.


Khaleej Times
2 hours ago
- Khaleej Times
Pakistan boosts defence budget by 20% but slashes overall spending in 2025-26
Pakistan will raise defence spending by a steep 20% after a military clash with its old enemy India last month, but will slash overall federal expenditure for fiscal 2025-26 by a hefty 7% to 17.57 trillion rupees ($62 billion). The budget presented on Tuesday by Prime Minister Shehbaz Sharif's government allocated 2.55 trillion rupees ($9 billion) to defence in July-June 2025-26, up from 2.12 trillion. It projected a deficit of 3.9% of GDP against the 5.9% targeted for 2024-25. Inflation was projected at 7.5% and growth at 4.2%. The South Asian nation wants to kickstart growth while boosting its defences after the worst fighting with its neighbour in nearly three decades - which it has cast as a victory - and meeting the strictures of an International Monetary Fund finance programme. "After defeating India in a conventional war, now we have to surpass it in the economic field," Sharif said in a statement. Pakistan must also contend with the uncertainty of new import tariffs being imposed by the United States, its biggest export market. The clash with India was sparked in April by Islamists who killed 26 men in an attack on Hindu tourists in Indian Kashmir. Islamabad denied New Delhi's allegation that the militants were backed by Pakistan. Four days of fighting featured jets, missiles, drones and artillery. INDIA AND PAKISTAN BOTH BOOST MILITARY SPENDING For the coming year, Pakistan's government allocated 742 billion Pakistani rupees ($2.63 billion) to military pensions, taking the entire defence budget to 3.292 trillion Pakistani rupees ($11.67 billion). That included 704 billion Pakistani rupees ($2.5 billion) in spending on equipment and other physical assets. India's defence spending in its 2025–26 (April-March) fiscal year was set at $78.7 billion, up 9.5%, including pensions and $21 billion earmarked for equipment. It has indicated that it too will boost defence spending further. Sharif's government has projected 4.2% economic growth in 2025-26, saying it has steadied the economy, which looked at risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7%, against the budgeted target of 3.6%. Pakistan's growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8% and the Asian Development Bank expects 6.0% in 2025. Finance Minister Muhammad Aurangzeb said the government intended to complete the privatisation of Pakistan International Airlines, a request of the IMF. Growth should be aided by a sharp drop in the cost of borrowing, the government says, after a succession of interest rate cuts. But economists warn that monetary policy alone may not be enough, with fiscal constraints and IMF-mandated reforms still weighing on investment. Aurangzeb said that the budget was the start of a strategy to boost exports, increase foreign currency reserves to avoid the balance of payments crises of the past, and create a more competitive economy. "In short, our budget strategy is to change the economy's DNA by bringing basic changes," he said.


The National
2 hours ago
- The National
IMF concludes first mission to Syria since 2009
The International Monetary Fund concluded its first staff mission to Syria since 2009, as the country's new government seeks to rebuild its economy following the fall of Bashar Al Assad's regime in December. Syria will need 'substantial international assistance' to assist in recuperating its economy, meet humanitarian demands and rebuild infrastructure, the fund said on Tuesday, following the staff's June 1 to 5 visit. Estimates to rebuild Syria's economy – shattered from years of civil war – range from $250 billion to $500 billion. 'Syria faces enormous challenges following years of conflict that caused immense human suffering and reduced its economy to a fraction of its former size,' Ron van Rooden, the IMF's mission chief to Syria, said. The World Bank previously estimated Syria's economy had contracted by 60 per cent since 2011, and the UN reporting more than six million Syrian refugees live in neighbouring countries since then. 'There is great urgency to address these challenges and achieve a sustainable economic recovery, including to absorb the increasing number of returning refugees,' Mr van Rooden said. The IMF said its discussions with Syrian officials were centred on near-term policy priorities including adopting a budget for the remainder of this year and ensuring assistance is provided to the most vulnerable members of the population. They also discussed the need for improving the tax and customs regime, strengthen public financial management, ensure price stability and rehabilitate the payment and banking systems. Additional near-term goals include improving investment climate and enhancing data collection. 'The authorities will need strong international support for their efforts,' Mr van Rooden said. 'This includes financial support at highly concessional terms … and extensive capacity development assistance to strengthen economic institutions and upgrade outdated technologies and systems.' Syria has been gradually reintegrated into the global economy since its interim government took hold in December, with Gulf nations and other international partners moving to support its recovery. US President Donald Trump's administration began taking steps to ease US sanctions on Syria last month following his May 13 to 16 visit to the Gulf. Those efforts include authorising transactions involving Syrian President Ahmad Al Shara's government, the central bank and state-owned enterprises. The EU also announced it would lift all economic sanctions on Syria to support its economic recovery. Saudi Arabia and Qatar also paid off Syria's arrears to the World Bank, clearing another crucial hurdle to receive economic assistance. Meanwhile, it has received major financial investments from the Gulf including a $7 billion energy infrastructure deal supported by Qatar's UCC Holding, a $6.5 billion aid pledge from international partners and an $800 million port agreement with the UAE's DP World. Syria is also expected to be fully reconnected to the SWIFT international payment system 'in a matter of weeks', Central Bank of Syria's Governor Abdulkader Husrieh, told the Financial Times on Monday. Syrian officials had attended a high-level round-table hosted by the IMF, World Bank and Saudi Arabia's Finance Minister Mohammed Al Jadaan on the sidelines of the spring meetings in April to discuss the challenges of the country's new government. IMF managing director Kristalina Georgieva told reporters during a press briefing at the time the fund was focused on rebuilding credible data capability, as well as the country's central bank and its capacity to create revenue.