EABC crucial for business boom

This was said by Chief Secretary (CS), Ambassador John Kijazi, during the courtesy visit by members of the EABC on his office in Dar es Salaam on Monday. Ambassador Kijazi pledged to forward EABC concerns to President John Magufuli and to other levels of the government for action.

Liberalisation of service sector, harmonisation of taxes, freer movement of workers and local content were among other burning issues brought to the attention of the CS in a bid to advance the EAC integration Agenda.

The EABC vice-Chair, Uganda, Mr Kassim Omar, appreciated the government efforts to improve efficiency at Dar port but asked for removal of VAT on ancillary services rendered to transit goods.

“Indeed, the Dar es Salaam port has improved,” he said, mentioning the ancillary services rendered to transit goods such as stevedoring, lashing and securing, cargo inspection, preparation of customs documentation, container handling and storage of transported goods to be transported.

He said though VAT is levied on companies based in Tanzania, the tax is finally transferred to owner of the transit goods who are later supposed to pay VAT in destination country on arrival of goods.

He urged the government to harmonise the preferential treatments it offers to transit goods services to encourage use of central corridor exemplifying, while Rwandese transit trucks pay 150 US dollars. Other EAC countries pay 500 US dollars. On his part, the EABC vicechairman Tanzania, Mr Felix Mosha, said that affordable movement within the region can enrich the EAC Integration.

“There is need for common understanding on air transport in terms of how to liberalise air transport and domesticating the EAC air space,” noting that regional air tickets cost are significantly higher than international ones.

EABC Chairman, Mr Audace Ndayizeye, commended the EAC Heads of Summit under President Magufuli for the remarkable progress towards the realisation of the regional integration process, noting landmarks such as reduction of road blocks along the Central Corridor, reduction of work permits fees and signing of the East African Community (EAC) Elimination of Non-Tariff Barriers to Trade Bill (2015), among others.

Daily News