Call to harmonise tax regimes in East Africa

ALAN PEAT A UGANDAN government minister has called for harmonised tax regimes in the East African community. High taxes make Uganda a susceptible target for smugglers from neighbouring states, according to Igeme Nabeta, minister for trade. Talking to Kampala’s Daily Monitor, he said that taxes on goods in Uganda were high compared to those levied on similar products in neighbouring countries, and this encouraged smuggling – especially in cigarettes and mobile phones. The government is losing revenue due to this tax evasion and it needs to curb a practice that appears to be on the increase, the report added. There are short-term mechanisms to stop smuggling, such as tightening surveillance at the border points, but the minister said he believed that the long-term solution would be to remove tax imbalances in the East African region.