NL: 6As the ambers of the fires started by the Finance Bill 2024 continue to linger in the air – something interesting happened on Sunday, June 30, 2024, in Arusha, Tanzania.....CLICK HERE TO READ THE FULL ARTICLE>>>
The East African Community (EAC) published on its website a gazette notice itemizing the approved measures on import duty rates in the EAC External Tariff (EAC CET).
The 131-page document is currently on the front page of the EAC website.
The document appears to mirror from a distance, some of the controversial items that were in the Finance Bill 2024.
The confusion is on what this portends for Kenya – especially after President William Ruto grudgingly declined to sign the Bill into law.
Of interest to Kenyans, however, is the fact that some of the items (goods) targeted for duty or taxation as captured in the EAC Gazette Notice Vol. AT 1 – No.18 – are some of the hot potato items on the Finance Bill 2024.
A similar document, however, could not be found on the Ministry of EAC, ASALS & Regional Development – headed by Hon Peninah Malonza.
Items like baby diapers, mobile phones, television sets, also crude palm oil, and furniture, have been affected upwards by the taxes.
This means that such goods, as listed, will be subjected to the new customs duty, making their prices to go up.
The general feeling is that such legislation, should always align with the laws of the country.
The Gazette notice is coming at a time when the Kenyans government is grappling with nationwide demonstrations over Finance Bill 2024 document that has since been thrown back to the parliament like an unwanted child.
Some of the controversial items that made the Finance Bill 2024 unpalatable and therefore hard to swallow for most Kenyans appear to be contained in this EAC Gazette Notice issued on Monday, July 30 – in Arusha – some five hours away from Nairobi by bus.
In the document, already counting hours on the EAC website, Baby Diapers have been lined up for increased taxation; as Kenya alongside other EAC members made a decision to apply a duty rate of 35% for one year — and not the previous 25 %. This means that prices of diapers will increase as duty goes up.
Television sets will now apply a duty rate of 35% for one year, moving away from the EAC CET rate of 25%.
As for mobile phones, Kenya has made a decision to stay application of EAC CET rate of 0% and apply a duty rate of 25% for one year. This will have the net effect of an increase in prices of mobile phones.
Concerning crude oil, Kenya to stay application of the EAC CET rate of 0% and apply a duty rate of 10% for one year. Also affected, albeit in a different way are refined Soya Bean Oil, RDB Palm OLEIN, Other Palm Oil Refined Sunflower Oil, Refined Corn Oil.
This is coming just a few days after President William Ruto reverted the controversial bill back to Parliament, with express directives through a presidential memo that all the 69 amendments be removed, killing the bill.
What ideally would remain is for the Kenya Revenue Authority (KRA) to integrate the decisions into its systems, to ensure these are effected. But this is unlikely to be the case especially after what befell the Finance Bill 2024 as initially proposed…CONTINUE READING>>
