The East African Community (EAC) has recently stirred confusion by publishing a gazette notice on its website, outlining new measures on import duty rates in the EAC External Tariff (EAC CET).
This development comes just days after the Finance Bill 2024 was withdrawn, raising concerns among the public and stakeholders about the impact of these new taxes on essential goods.
The EAC Gazette Notice Vol. AT 1 – No. 18 lists several items that will be subjected to increased duties, many of which were already contentious topics within the Finance Bill 2024.
Key items affected include baby diapers, mobile phones, television sets, crude palm oil, and various types of furniture.
These new duties are expected to lead to significant price hikes for these goods, impacting consumers across the region.
One of the most notable changes is the decision to impose a 35% duty rate on baby diapers for one year, up from the previous rate of 25%.
This increase means that parents will face higher costs for an essential item, adding financial strain to families with young children.
Television sets will also see a substantial increase in duty, with the rate rising to 35% for one year, compared to the previous EAC CET rate of 25%.
This change is likely to make televisions more expensive, affecting both consumers and retailers.
In the case of mobile phones, Kenya has decided to depart from the EAC CET rate of 0% and implement a 25% duty rate for one year.
This policy shift will lead to higher prices for mobile phones, potentially affecting accessibility to technology and communication for many Kenyans.
Additionally, Kenya will apply a 10% duty rate on crude palm oil for one year, deviating from the EAC CET rate of 0%.
Other oils affected by this change include refined soybean oil, RBD palm olein, refined sunflower oil, and refined corn oil.
These increases in duties on oils are expected to raise the costs of various food products and cooking essentials, impacting household budgets.
The decision to impose these new taxes has raised numerous questions and concerns.
Many are puzzled by the timing of the announcement, coming so soon after the Finance Bill 2024’s withdrawal, which had already sparked significant public debate and protest.
The overlap between items listed in the EAC Gazette and those in the Finance Bill has led to suspicions about the coordination and communication within the region’s economic policies.
Consumers, businesses, and advocacy groups are calling for greater transparency and clarity from the EAC and national governments regarding these changes.
They emphasize the need for a comprehensive explanation of how these new duties will benefit the region and mitigate the negative impact on ordinary citizens.
As the EAC member states move forward with implementing these new duty rates, it remains to be seen how the economic landscape will be affected.
The increased costs of essential goods will undoubtedly pose challenges, and the public will be closely watching how governments address these concerns and manage the economic fallout.
Stay informed with further updates as this story develops, and follow this account for more detailed reports on the evolving situation within the East African Community.
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