TZ ignores tax deal on Kenyan sweets
Tanzania has ignored a deal that granted Kenyan-made confectionery products such as chocolate, ice cream, biscuits and sweets unrestricted entry to its market, setting the stage for a fresh round of trade wars.
Dar es Salaam continues to impose taxes on Kenyanmade confectionery products citing the use of zero-rated imported industrial sugar in the goods. This goes against a truce announced on July 5.
Tanzania and Uganda had earlier in the year slapped a 25 per cent duty on Kenyan-made confectionery, juice, ice cream and chewing gum.
Tanzanian and Ugandan authorities claimed use of zero-rated industrial sugar tilted competition in favour of Nairobi factories.
A joint statement on July 5 following months of talks between Kenya’s Trade PS Chris Kiptoo and his Tanzania counterpart Elisante ole
There are still some products ... which are still unable to access some of our partner states at preferential) rates” SACHEN GUDKA | KAM CHAIRMAN
Gabriel said a truce on trade tensions had been reached.
Yesterday, the Kenya Association of Manufacturers (KAM) chairman Sachen Gudka, said confectionery makers are still being subjected to taxes at the border with neighbouring EAC nations.
“There are still some products which are made from industrial sugar which are still unable to access some of our partner states at preferential (taxation) rates,” Mr Gudka said in Nairobi on Tuesday.