EAC boss warns against arbitrary levies in region

By John Oyuke

East African local government authorities should desist from levying taxes on goods, business people and transporters arbitrarily, as they affect trade and investment in the region.

East African Community (EAC) Secretary General Dr Richard Sezibera said the imposition of these taxes, local authorities was undermining international treaties, the EAC Customs Union and Common Market Protocol.

"You can’t tax a truck transiting through your localities. It is against international law and you could be taken to court," he said.

"These impromptu road blocks, fees and other NTBs do not serve us well, and instead impact on businesses and investment," he added.

Sezibera, who was meeting officials of the East African Local Governments Association (EALGA), said it was imperative for the EAC Secretariat to work closely with local governments.

The Chair of the EALGA — who is also the chairman of the Association of Local Government Authorities of Kenya (ALGAK) and President of the United Cities and Local Governments of Africa, Taraiya Kores — led EALGA members to the meeting.

In a statement, Sezibera said that collaborations between the Secretariat and local governments were critical in order to disseminate information, mobilise and rally support of ordinary citizens on the integration and development processes.

Separately, the Common Market for Eastern and Southern Africa (Comesa) Regional Customs Transit Guarantee (RCTG Carnet) has been rolled out in the Northern Corridor countries of Kenya, Uganda, Rwanda and Burundi.

Valid guarantee

This means border points in the countries are now issuing Carnet for goods in transit from Mombasa to Kampala, Uganda. The rollout will soon commence in Djibouti –Ethiopia and the North-South Corridors, according to a Comesa statement.

A Carnet is a security document that is used throughout the transit process in the Comesa region as proof of a valid guarantee and an undertaking to comply with customs obligations within each transited jurisdiction.

It said all the Carnet issued have been processed and acquitted on successful completion of the transit at final destination.

The RCTG Scheme is a component of Comesa’s Protocol on Transit Trade and Transit Facilitation. This issuing of the Carnet follows extensive review of the system by customs administrations, sureties, clearing and forwarding companies, and other stakeholders, the inter-governmental trade organisation said.

The Reinsurance Pool of the RCTG Carnet — established with a start-up working capital of $1 million (Sh83m) to strengthen the guarantee given to customs administrations — has also started its operations.

Additional security

The pool was established to provide additional security to sureties in order to ensure the full protection of government revenue, in case the sureties fail to meet their obligations due to reasons beyond their control.