Household Items Whose Prices Will Go Up as New EAC Tax Takes Effect

Customers queueing at a supermarket in Kenya
Customers queueing at a supermarket in Kenya
File

Food commodities such as meat, cooking oil and fish are expected to go up after the new East African Community (EAC) Common External Tariff took effect yesterday - July 1.

The tariff was agreed upon by member states in May and imposes a 35 per cent levy on goods imported from outside the regional bloc.

EAC stated that the move was aimed at promoting local production and trade within member states of the regional trading bloc.

Namanga One Stop Border post
Namanga One Stop Border post
File

"In exercise of the powers conferred upon the Council of Ministers by Article 12 (2) and (3) and 39(1) (c) of the Protocol on the Establishment of the East African Community Customs Union, the Council of Ministers has reviewed and adopted a four band common external tariff structure for the Community

"The Community shall have a four band common external tariff with a minimum rate of 0 per centum, rates of 10 per centum, 25 per centum and a maximum rate of 35 per centum in respect of all products imported into the Community," reads the EAC Gazette Notice in part.

Other food commodities that are affected include eggs, honey, coffee, cereals, fruits, and vegetables.

Apart from food items, commonly used products such as fertilisers could skyrocket as they are also included in the list.

Photographic, cinematographic goods, umbrellas, leather products, carpets, iron and steel are also included in the list.

"In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith."

Kenyans planning to import vehicles outside of the EAC bloc will also dig deep into their pockets as the region imposes new tariffs.

"Vehicles other than railway or tramway rolling stock, and parts and accessories thereof, aircraft, spacecraft, ships, boats and floating structures," added the notice.

Already the Kenyan taxman has informed importers of the new changes that took effect July 1.

Cooking oil products on sale
A stock photo of bottled cooking oil on sale at a supermarket.
Photo
istock
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