East Africa Looks At Tax Harmonization

October 14, 2014 Taxation in Kenya

NAIROBI – In less than one year the five countries of the Eastern African Community will have a harmonized tax system.

At an event to mark the launch of Taxpayers Week in Kenya on October 13th the Tourism Cabinet Secretary Phyllis Kandie announced that the process of harmonizing taxes among the countries of the East African Community should be completed by April 2015.

During her speech she explained that the governments of Burundi, Kenya, Rwanda, Tanzania and Uganda are pursuing the implementation of a “…the harmonization will see a fully operational Single Customs Territory which was hampered by the absence of a harmonised tax regime.”

The process of facilitating a harmonized tax system is currently ongoing, with Kenya, Uganda and Rwanda recently implementing matching rates of excise tax on tobacco, alcohol and cleaning detergents.

The harmonized tax system is intended to help strengthen political and economic cooperation between the countries of the EAC, ultimately assisting growth not only among the countries but also helping to increasing external trade and export.

Photo By: Linh Do