Complaint

Complaint number
NTB-001-010  
NTB Type
2.6. Additional taxes and other charges  
Complaint
INIQUITOUS TAX AND RESTRICTION OF TRADE
In order to export poultry products to Uganda, a Kenyan farmer/producer is charged 18% VAT, 6% withholding tax and 1% road levy. This is 25% cumulative tax payable to Uganda Revenue Authority (URA). It is important to note that in Uganda chicken is not vatable, yet they charge VAT on chicken from Kenya.  
Status note
On 14 June 2022, the EAC Secretariat reported that the SCTIFI meeting was informed that Uganda Law provides that processed chicken is charged VAT and is not discriminatory.
The meeting agreed that it was not an NTB and therefore resolved  
Progress update note
1. On 17 May 2021, Uganda Focal Point reported that the Republic of Uganda held a Bilateral meeting with Kenya and agreed on a time frame of 1st July 2021 to resolve this and other NTBs related to taxation.
2.The NTBs was forwarded to the Directorate of Tax and Policy in the Ministry of Finance to be resolved in the FY 2022/2023. Uganda to invite Kenya for a midterm review of the Bilateral meetings in November 2021. Kenya requested Uganda to consider an interim measure on the VAT exemption.  
Policy or regulatory NTB
No 
Location
Uganda: Busia (Border post)  
Reporting Country or Region
Kenya  
Country specific trade issue
No  
Date of incident
2020-03-20  
Status
Resolved  
Date of resolution
2022-06-14  
Product Description
INIQUITOUS TAX AND RESTRICTION OF TRADE BY UGANDAN AUTHORITIES
In order to export poultry products to Uganda, a Kenyan farmer/producer is charged 18% VAT, 6% withholding tax and 1% road levy. This is 25% cumulative tax payable to Uganda Revenue Authority (URA). It is important to note that in Uganda chicken is not vatable


 
Total value
350.00  
Date reported
2021-03-22 13:06  
Modified
2022-06-14 17:50