EALA MEMBERS TASKED ON REGIONAL TAX LAWS

Members of the East African Legislative Assembly (Eala) have been tasked to swiftly intervene on delayed ratification of key laws on regional trade. 

These are  the EAC Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income which are yet to be ratified.

The East African Business Council (EABC) wants the legislators to champion the ratification of the laws by the seven partner states in the bloc.

Ratification of the laws should be fast-tracked in a bid to reduce the  cost of doing business and lure more investments, according to  the apex body of private sector associations based here.

Adrian Njau, EABC trade and policy advisor with the business body decried what he described as tax distortions  that have impeded regional trade.

"Tax distortions do impede the free movement of goods, services, service suppliers, labour and capital", he said when speaking to a delegation of Eala MPs who visited EABC offices.  

The MPs from the Eala Committee on Communication, Trade and Investment were there to get the status update on business perspectives on non-compliance of the trade protocols.

Christopher Nduwayo, the chairperson of the Committee said the Assembly was committed to formulating business-centric laws to spur intra-EAC trade and investments.

However, Mr Njau said the region was not yet economically integrated due to a number of trade barriers such as the notorious non-tariff barriers (NTBs) which have never been eliminated. 

He associated the barriers to protectionist measures often applied by some East African Community (EAC) partner states, noting that they have stifled intra-EAC trade. 

He added that overdue operationalization of the EAC Trade Remedies Committee tasked to handle matters relating to the application of Rules of Origin has aggravated the situation.

Among other unresolved challenges, according to Mr. Njau are recurring trade disputes among the partner states.

Although the region has managed to resolve 230 NTBs by February this year, the EAC partner states are yet to finalize the amendment of  the EAC Elimination of NTB Act, 2016 and its Regulations.

On her part, an Eala member from Rwanda Ms Gasinzigwa Oda said the Assembly would continue to exercise  legislative, oversight and representative functions on matters pertaining to the EAC integration agenda.

She decried that the region was yet to fully implement harmonization of standards, Review of EAC Rules of Origin and free movement of services, services suppliers, workers.

Others are liberalization of air transport services, Single tourist visa, One Network Area(ONA)  for telecommunication and fast-tracking implementation of African Continental Free Trade Area (AfCFTA).