Kenya, Tanzania set up talks over tax dispute

Geza Ulole

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Oct 31, 2009
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Kenya, Tanzania set up talks over tax dispute

WEDNESDAY JUNE 21 2017

[https://www]

Workers carry away winnowed wheat in Uasin Gishu County. Kenya is keen to protect its wheat farmers. PHOTO FILE | NATION

In Summary

Simmering dispute follows Kenya denying duty-free access for wheat from Tanzania despite trade covenant.

[https://www]By JAMES ANYANZWA
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Kenya and Tanzania have agreed to hold a meeting from June 21 to 23 to iron out a tax dispute on wheat flour that is threatening to undermine regional integration.

The agreement was reached on the sidelines of the East African Community Sectoral Council on Trade, Industry, Finance and Investment meeting in Arusha on June 2.

This came after Kenya disregarded advice from the EAC Secretariat to allow Tanzania’s wheat flour access its market duty-free.

According to the EAC Secretariat, Kenya, Tanzania and Uganda currently enjoy 10 per cent duty on importation of wheat grain from outside the region and, therefore, the preferential trade between them would not disadvantage any of the member states.

But Kenya has maintained a hardline stance that it will not allow Tanzanian wheat flour into the country. And, should Tanzania decide to opt for a duty remission scheme, Kenya will still charge import duty to protect its wheat farmers.

This, says the secretariat, contradicts the spirit of the EAC integration.

Grace period

Kenya had been given until February 10 this year to allow Tanzanian wheat flour access to its market without duty but only allowed a limited amount and banned subsequent consignments, a development that has infuriated Tanzanian authorities.

For instance in February 2017, Kenyan bread manufacturer DPL Festive Ltd ordered 40 trucks of wheat flour from Said Salim Bakhresa and Company Ltd, Tanzania, according to a trade and policy brief at the East Africa Business Council.

But, after all 40 trucks were approved by a Kenya Revenue Authority officer in Namanga border point, a counter-order came from the KRA head office directing that all the trucks be turned back or otherwise pay the full duty of 50 per cent.

Tanzania is of the view that the wheat flour produced from the grain that attracts 10 per cent Common External Tariff (CET) be traded on a duty-free basis between the two countries immediately.

Pre-budget meeting
Kenya on the other hand insists that given the different schemes being applied, wheat flour produced from the grain that attracts 10 per cent CET can only be traded duty-free between the two countries after a gazette notice providing for duty remission.

The EAC Permanent/Principal Secretaries noted that although wheat is in the sensitive list at 35 per cent in CET, all partner states have been importing it with a duty remission.

Tanzania maintains that its wheat flour qualifies for duty-free access to the Kenyan market since it meets the EAC rules of origin.

During the EAC meeting meeting in Arusha of June 2, 2017, Tanzania was concerned that despite the matter having been resolved by the pre-budget meeting of the ministers of finance, wheat flour from Tanzania is still denied entry into Kenya.

READ: Kenya seeks end to EAC import duty exemptions

Periodic evaluation

The Council called for the review of the duty remission regulations to cater for the protection of local wheat farmers. It also noted that wheat grain, being a raw material, should benefit from duty remission in accordance with the EAC Customs management law.

The Council recommended periodic evaluation of imported wheat grain to ensure that wheat grown locally is given priority by millers.

This will free up their time to discuss issues of duty remission, protection of local farmers, mopping up of local wheat and policy direction regarding milling.

Kenyan millers expressed concern that Kenyan officials at the border were allowing zero-rated wheat flour from Tanzania to enter the country even though Kenyans pay duty when exporting their products to the EAC.

Kenya’s wheat production deficit has increased over the years, with local production currently estimated at less than 20 per cent of the total supply, necessitating imports.



Kenya, Tanzania set up talks over tax dispute

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REDEEMER.

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Feb 22, 2015
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Sasa si mtatuchoka mapema sababu mtakataa vingi kutoka Tanzania, when think about more than 200 new industries in Pwani only.
 

mulisaaa

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Jun 16, 2017
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They are not 200 but 371 industries in Pwani only na Leo anazindua vingine viwili
Sasa si mtatuchoka mapema sababu mtakataa vingi kutoka Tanzania, when think about more than 200 new industries in Pwani only.
 

Mwanzi1

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Sep 19, 2016
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Wako wapi wakenya waje kujitetea, halafu wanasema Tanzania inawachelesha EAC. Kenya wameaza kulegeza kamba maswala ya EAC, hakuna MP kwenye EAC, hakuna EPA treaty, hakuna pipeline, SGR kwenda uganada na Rwanda iko matatani, kodi ndani ya EAC inawatia ukakasi. Walitegemea EAC italala kwa muda mrefu kabla haijaamka, lakini upepo unabadilika kwa mwendo wa kasi sana.
Wanakataa ngano ya kutoka Tanzania huku wanapokea vyakula vya misaada kutoka Turkey.
Turkey gives food aid to over 100 households in Kenya
 

Dhuks

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Mar 15, 2012
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Kenya does not have wheat grain deficits so thinking that you are feeding us is moot. We need maize but you want to substitute? Wont work. Anyway, if EAC rules say we should allow duty free grains across borders we should allow it
 

Jay456watt

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Aug 23, 2016
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wacha mazungumzo yaanze...kila nchi huwa inafanya mambo kuprotect wananchi wake...let us hope they will come up with a practical solution at the end of the talks....kenya has good reasons for this..it wants to protect its farmers...tanzania also has good reasons....internal EAC trade should be duty-free..well I think they should allow the wheat to enter the market duty-free but they shoud also allow kenyan goods to enter tz duty-free....EAC intergration
 

Geza Ulole

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Oct 31, 2009
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wacha mazungumzo yaanze...kila nchi huwa inafanya mambo kuprotect wananchi wake...let us hope they will come up with a practical solution at the end of the talks....kenya has good reasons for this..it wants to protect its farmers...tanzania also has good reasons....internal EAC trade should be duty-free..well I think they should allow the wheat to enter the market duty-free but they shoud also allow kenyan goods to enter tz duty-free....EAC intergration
So when EAC tell Kenya to allow Tanzanian wheat to enter duty free Kenya, u think those parameters were not looked at? I wish Magufuli should reciprocate n block Kenya's milk n KQ flights in Tanzania. This is election year in Kenya..
 

Jay456watt

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Aug 23, 2016
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So when EAC tell Kenya to allow Tanzanian wheat to enter duty free Kenya, u think those parameters were not looked at? I wish Magufuli should reciprocate n block Kenya's milk n KQ flights in Tanzania. This is election year in Kenya..
stop ur stupidity...nairobi is the aviation hub of East Africa...not even Magufuli is stupid enough to block all flights from kenya...umesahau airport zenu ni kama soko la kariakor pamoja na ndege ambazo zinfanana na daladala (bombadier) Lol!...hehehehe...anyway kwa hili la ngano natumai watatatua na kukubali muweze kuingiza bila kodi...ila ujue si bure..lazma nasi tuweze kuleta bidhaa zetu bila kodi...nyie ata ndio mlianza huu ujinga unakumbuka mlipowafukuza wakenya? unakumbuka mlipoamrisha kupunguzwa kwa flight za KQ into Tanzania? so dont start complaining when we place custom duty on ur wheat...you can block milk from Kenya..we will just find another market...dont think Kenya will not run when tanzania decides to stop cooperation....we have better things to do than quarrel with poor LDCs..
 

Geza Ulole

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Oct 31, 2009
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stop ur stupidity...nairobi is the aviation hub of East Africa...not even Magufuli is stupid enough to block all flights from kenya...umesahau airport zenu ni kama soko la kariakor pamoja na ndege ambazo zinfanana na daladala (bombadier) Lol!...hehehehe...anyway kwa hili la ngano natumai watatatua na kukubali muweze kuingiza bila kodi...ila ujue si bure..lazma nasi tuweze kuleta bidhaa zetu bila kodi...nyie ata ndio mlianza huu ujinga unakumbuka mlipowafukuza wakenya? unakumbuka mlipoamrisha kupunguzwa kwa flight za KQ into Tanzania? so dont start complaining when we place custom duty on ur wheat...you can block milk from Kenya..we will just find another market...dont think Kenya will not run when tanzania decides to stop cooperation....we have better things to do than quarrel with poor LDCs..
Yes Nairobi is aviation hub ila Magufuli can afford to block only KQ, how about that? Since Precision Air is 58% owned by Tanzania n 41% by KQ will definitely take the routes that currently r under KQ, meanwhile KLM, Turkish air, Qatar airways n Dubai air, Ethiopian Airlines n Rwandair will lift cargo n tourists to n from KIA while our Air Tanzania is growing n guess what will they have to do is to just increase their frequencies..

FYI, we want u to learn how irrelevant u r to Tanzania n pretty soon will get to learn

flydubai's frequency to Tanzania increases
 

1academ

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Oct 15, 2016
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Hahaa this easy, kubali waingize malori yao hadi nairobi,chukua the samples and declare them unfit for human consumption and to so to be destroyed at their own cost.. Waswahili hawatarudia tena ..
 

Geza Ulole

JF-Expert Member
Oct 31, 2009
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Hahaa this easy, kubali waingize malori yao hadi nairobi,chukua the samples and declare them unfit for human consumption and to so to be destroyed at their own cost.. Waswahili hawatarudia tena ..
As if Uhuru haleti maziwa Tanzania
 

KORBOTO

JF-Expert Member
Feb 14, 2014
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stop ur stupidity...nairobi is the aviation hub of East Africa...not even Magufuli is stupid enough to block all flights from kenya...umesahau airport zenu ni kama soko la kariakor pamoja na ndege ambazo zinfanana na daladala (bombadier) Lol!...hehehehe...anyway kwa hili la ngano natumai watatatua na kukubali muweze kuingiza bila kodi...ila ujue si bure..lazma nasi tuweze kuleta bidhaa zetu bila kodi...nyie ata ndio mlianza huu ujinga unakumbuka mlipowafukuza wakenya? unakumbuka mlipoamrisha kupunguzwa kwa flight za KQ into Tanzania? so dont start complaining when we place custom duty on ur wheat...you can block milk from Kenya..we will just find another market...dont think Kenya will not run when tanzania decides to stop cooperation....we have better things to do than quarrel with poor LDCs..
maskini jeuri nyie, tatizo lenu mnajiona saana wakati we need each other, tukiamua kuwa block seriously hata sisi tutapata impact ila haitakuwa kubwa kama mtakayopata.

nyie jiongelesheni tu huko kwenye slams zenu, huku Uhuru akimpigia magoti Magufuli.
 

Geza Ulole

JF-Expert Member
Oct 31, 2009
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maskini jeuri nyie, tatizo lenu mnajiona saana wakati we need each other, tukiamua kuwa block seriously hata sisi tutapata impact ila haitakuwa kubwa kama mtakayopata.

nyie jiongelesheni tu huko kwenye slams zenu, huku Uhuru akimpigia magoti Magufuli.
Believe me hamna impact kwetu kwenye ku-block KQ. Our airspace is so much liberalized n our facilities well improved to be a blessing in disguise to other airlines upon KQ's exit n our tourism is so much independent right now to an extent Arusha is to benefit if the few remaining packages btn Tanzania n Kenya r to be abolished.
 

KORBOTO

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Feb 14, 2014
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Believe me hamna impact kwetu kwenye ku-block KQ. Our airspace is so much liberalized n our facilities well improved to be a blessing in disguise to other airlines upon KQ's exit n our tourism is so much independent right now to an extent Arusha is to benefit if the few remaining packages btn Tanzania n Kenya r to be abolished.
thats the thing, they have many companies operating here, we are importing above 30% of their exports, if we are to do as we did to their fellow Rwandese in Kikwete's era these guys will be in real mess
 

Geza Ulole

JF-Expert Member
Oct 31, 2009
36,379
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thats the thing, they have many companies operating here, we are importing above 30% of their exports, if we are to do as we did to their fellow Rwandese in Kikwete's era these guys will be in real mess
Bring the list of what we import from them n there's no substitute overhere. Usikaririshwe subiri Magu aamue kama hujaona wakituma delegation kuomba msamaha! Lazima wapige kelele Magu ana-sabotage Jubilee govt kwanza..
 

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