Non-Tariff Barriers

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

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Total value

350.00  

Date reported

2021-03-22 13:06  

Modified

2022-06-14 17:50