Why Kenyan MPs Want Same Tax System Across East Africa

East Africa Legislative Assembly (EALA) Members of Parliament (MPs) have intensified calls for the harmonization of the finance bills and tax regimes among member countries.

Speaking on Monday, March 11, the MPs argued that the finance bills informed the tax rates and not the budgets of the respective states.

Kenyan elected MPs including Kanini Kena, Kurga Kering Zipporah Jesang and Mwangi Godfrey Maina all argued in favor of the idea.

The legislators said the varying tariffs have impeded trade across the borders hence the need for harmonization.

According to the MPs, a common tax structure will smoothen business between member states.

Kega argued that the Assembly has been so concerned about the budget of the various without giving attention to the tax structure.

“All the time we focus on how to harmonize the budget, but where is that money coming from? It is coming from the finance bill, so it’s high time that we harmonize the finance bill of the various partner countries,” EALA MP, Kanini Kega said.

Besides, Maina stated that EALA is prepared to adopt the suggestion to increase trade in the region.

He said, “The fact that we are having this discussion with the traders here shows EALA’s readiness to ease the movement of people and goods and increase the trade volume with East Africa.”

Also Read: Kenyan EALA MPs Push for Full Parliamentary Benefits

How a Unified Tax Regime Will Empower Women

MP Zipporah agreed with the two MPs stating that different tax regimes is among the issues blocking women from engaging in trading activities in the region.

She also listed external tariffs and travel documents as other factors hindering women from conducting trade in the East Africa.

“If we say that everyone had to own a passport in order to do trade, it will not be possible because most of the women just have the Identification (ID) Cards,” she said.

Also Read: UDA Picks Five Ex-MPs for EALA jobs

Tanzania MP Supports Idea

Dr Makame Hasnuu Abdulla from Tanzania agreed with them, opining that the integration of the tax regime is among the issues EALA should address.

According to Abdulla, the community concluded negotiations with the custom union protocol in 2004 and the common market protocol in 2009.

He added that the two instruments got into legal force in 2005 and 2010 respectively leaving harmonization of domestic taxes as the pending issue.

EALA Membership

EALA constitutes of 62 MPs elected from the eight members of the East African Community (EAC).

The member states are the Democratic Republic of the Congo, the Federal Republic of Somalia, the republics of Burundi, Kenya, Rwanda, South Sudan, Uganda and Tanzania.

South Sudan president, Salva Kiir Mayardit, is the current EAC chairman.