Complaint number
NTB Type
1.7. Discriminatory or flawed government procurement policies  
Uganda charges Kenya manufactured excise books VAT at 18%. The VAT is not levied on Uganda locally manufactured books. The discriminative VAT is in violation of Article III of GATT 1994, Article 75(6) of the Treaty establishing the EAC and Article 15 of the EAC Custom Union Protocol as it subjects Kenyan manufactured products to VAT charges not charged on same domestic products in Uganda.  
Status note
During the Regional Meeting held in October 2021, the Republic of Kenya confirmed that the NTB was Resolved  
Progress update note
1. On 14 December 2020, the Focal Point , EAC Secretariat gave observations that most VAT Acts of Partner States provide for Exempt and Zero Rated Supplies under their specific schedules. VAT on locally manufactured items is normally paid at the point of sale while for imported ones is at the time of importation.Uganda Focal Point is therefore requested to assist to establish application of VAT on exercise books.
2.The NMC meeting that took place in March, 2021 noted the VAT is charged on a discriminatory basis and should be eliminated. Ministry of Trade to liaise with the Ministry of Finance and report during the RMC.
3. Uganda Focal Point reported that there is no evidence attached for this NTB however, the Value Added Tax (Zero rated Educational Materials) Regulations, 2018 Statutory Instrument No 22 of 2018 provides for what is considered as educational material and includes Exercise books as one them and this is at 0%.
4. On 13 April 2021, Kenya Focal Point reported that there is still denial of exemption and delays in processing of the exemptions as well. This zero rate educational materials-exercise books is not automatic in the system as clients need to apply.
5.The RMC meeting held in May 2021 noted that the Republic of Uganda held a Bilateral meeting with Kenya and agreed on a time frame of 1st July 2021 to resolve the NTBs related to Exercise books, Exercise books, and Pharmaceuticals  
Policy or regulatory NTB
Uganda: Uganda VAT (Government institution)  
Reporting Country or Region
Country specific trade issue
Date of incident
Date of resolution
Product Description

Total value
Date reported
2020-12-10 13:27  
2021-10-19 08:57