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.
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