Tuesday, August 27, 2024

TVs, soaps among goods Kenya set to increase taxes from Tanzania

By Natasha Gamalie.

TVs, soaps among goods Kenya set to tax from Tanzania

The East African Community announced new rates of duty for manufacturing and industrial inputs imported by Tanzanian firms and industries on Tuesday, July 16.

The EAC has noted in a Gazette notice that despite the EAC common tariff, some of the final products from the inputs shall attract duties, levies, and other charges provided in the EAC Common External Tariffs if sold in Kenya.

These products include soaps, tea packaging materials, food and beverage flavours and compounds, automotive, and non-automotive strengthened glass, electrical cables and wire products as well as televisions.

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The EAC agreed to waive import duties for Tanzania on a specific amount of RBD Palm Stearin used for soap production, setting the rate to 0% until June 30, 2025.

RBD Palm Stearin will be used to produce various soaps, including laundry, beauty, antibacterial, and toilet soaps.

“In the event that the above-finished products are sold in the Republic of Kenya, the Republic of Uganda and the Republic of Burundi, such goods shall attract duties, levies and other charges provided in the EAC Common External Tariff,” the Gazette notice read in part.

NCBA

Washing powder, detergent powder and paste as well as liquid soap and hand-wash were further poised to attract extra levy if sold in Kenya.

The raw materials for production include inner cartons, printed paper boxes, tea bag material, laminated film, and branded plastic wrapping.

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EAC further approved duty remission on raw materials and inputs used to package tea by tea blenders for Tanzania.

While the 0% duty rate on the materials ensures cheap tea packaging bags in Tanzania, the goods will be sold at a higher price in Kenya, Uganda and Burundi.

There will also be a cheap sale of food and beverage flavours and compounds as well as juice and soft drinks in Tanzania, due to the 0% duty rate of a mixture of odiferous substances as well as apple flavouring.

If the companies importing the raw materials in Tanzania decide to sell the final products in Kenya, then duties, levies, and other charges shall be attracted by the goods.

Lastly, Tanzanians will enjoy competitive television prices after EAC approves a 0% duty rate on the importation of unassembled television.

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