, NAIROBI, Kenya, Aug 15 – The East African Business Council has urged Tanzania and Burundi to ratify the East Africa Community Multilateral Tax Treaty that is expected to increase investment in the region.
EAC Trade and Policy Advisor Adrian Njau said the delay in ratification has meant that businesses and workers within the region continue to be subject to double taxation and discrimination when working in other EAC states.
Njau added that the delay has slowed the flow of intra-regional investment in the region due to double taxation and tax discrimination.
“The Agreement was created with several goals in mind including providing certainty and predictability for investors and to further enhance fiscal harmonization n the EAC region,” he said.
Implementation of the Agreement would also mean that there would be protection of the tax bases of each partner states.
A continued delay means that residents of third-party states with treating with EAC partner states will continue to receive better and more consistent tax treatment than residents from sister EAC partner states.
Kenya, Rwanda and Uganda have ratified the tax treaty that was formulated in 2010.
“We hope to be able to convince the two countries that the benefits of the Agreement outweigh any concerns about short-term revenue loss through a public-private dialogue,” EABC Ambassador Peter Mathuki said.