Tanzania and Uganda have decided to introduce a tax of Kenyan confectionary goods, including chocolates, sweets and ice-cream.

The countries claim the 25% import duty tax is related to the use of imported industrial sugar.

The news follows the rejection of certificates of origin issued by the Kenya Revenue Authority (KRA).

If the documents, which certify the origins of the goods and therefor determine the charge of import duties, had been accepted by the two nations, Kenya would have been guaranteed tax-free entry.

This follows the rules under the East African Community (EAC) bloc, which allows locally manufactured goods to travel between Burundi, Kenya, Rwanda, Tanzania, Uganda.

Kenya has been accused by authorities in Uganda and Tanzania that its manufacturers have been using imported sugar under a 10% duty remission scheme.

“This is an EAC-wide remission scheme that is available to all manufacturers in the region,” stated Phyllis Wakiaga, CEO of Kenya Association of Manufacturers (KAM).

“We are not supposed to pay duty when we sell in the region because our competitors in the region also rely on industrial sugar imported under the same remission scheme.”

Source: Business Chief