TZ ig­nores tax deal on Kenyan sweets

Business Daily (Kenya) - - ECONOMY & POLITICS - Con­stant Munda cmunda@ke.na­tion­media.com

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.

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