The East Africa Community has today resolved the long awaited issue of tax paid by companies operating in more than one member country of the East African Community. The resolution was made by the East African Community Ministers in Arusha Tanzania.
Uganda's Eriya Kategaya
Uganda was represented by the Deputy Prime Minister and Minister for East Africa Affairs, Eriya Kategaya.
One of the resolution stated that any company with branches in different countries of the East African Community will be taxed once.
The Ministers say that this will reduce poverty and increase development in the community since the tax burden will have lowered.
The East African Community is an intergovernmental organization comprising the republics of Uganda, Kenya, Tanzania, Rwanda and Burundi.
The East African Community whose Treaty was established on 30th November 1999, its approval was made on 7th July 2000 by the three original states of Uganda, Kenya and Tanzania before Rwanda and Burundi joined on 18th June 2007 and confirmed full members on 1st July 2007.
The five EAC member states have already signed a Common market protocol which begin officially on July 1st 2010, but some unharmonized issues like handling of taxes have been a thorny issue.
By Issa Asuman