EA revenue bodies sign deal for single tax system

Kampala.
Uganda, Kenya and Rwanda revenue authorities have endorsed a report that is set to fast-track the start of the single tax clearance centre for the East African member states that heavily depend on the Mombasa port for its economic survival.

This idea was resurrected in 2005, but not until last month in June in a Tripartite Summit that the Kenya, Uganda and Rwanda Heads of State issued a joint communiqué directing that the collection of customs duties by Uganda and Rwanda be done at the Mombasa port using the general bond security.

“In the spirit of the East African integration, Kenya Revenue Authority (KRA), Uganda Revenue Authority (URA) and Rwanda Revenue Authority (RRA) have begun preparations for implementation of the Single Customs Territory (SCT),” reads the joint statement issued after the three revenue prefects received the report.

Single customs territory
In principle, the community leadership has already agreed to adopt a Single Customs Territory where taxes are collected at the first point of entry. But what is left, which is also going to be queued by the technical report that the commissioner generals have endorsed is the operationalization of the system.

“This development stands to positively impact the three partner states’ trade activities, as it will ensure that assessment and collection of taxes is done at country of destination before such cargo moves out of the port,” the policy analyst for Private Sector Foundation, Moses Ogwal, said in an earlier interview.
Meanwhile, the three partner states have agreed on mutual recognition of customs bonds executed by their respective insurance companies, as cargo destined to bonded warehouses will be verified at the port of origin or entry, by liaison customs officials representing the destination countries.

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