Trade Relations: Kenya urges Uganda to remove taxes on poultry products

*Kenyan authorities criticise Uganda’s imposition of 18 percent Value Added Tax on processed poultry meat exported from the country into the latter

Isola Moses | ConsumerConnect

In order to facilitate bilateral trade relations and improve the supply of poultry products including chicken, meat and egg importation to cushion local producers’ shortfall, Kenya has renewed its push for a review and regularisation of the existing 18 percent Value Added Tax (VAT), a six percent Withholding Tax (WHT), and one percent railway levy charged on its poultry product exports to Uganda.

A Kenyan delegation, led by the Industrialisation, Trade and Enterprise Development Cabinet Secretary Betty Maina met with President Yoweri Museveni of Uganda, in Kampala, where it raised the complaint recently, according to Business Daily.

A joint communiqué on improving bilateral trade relations between the two countries said: “Regarding Uganda’s imposition of 18 percent VAT on processed poultry meat exported from Kenya into Uganda: the action is in contravention of Article 15 of the EAC Customs Union Protocol and Uganda shall amend the applicable law to bring it into conformity with the protocol with effect from 1st July 2021.”

It was learnt the unfavourable taxation makes it difficult for the Kenyan poultry products to access the Ugandan market.

In 2020, the country’s Federation of Poultry Farmers reportedly asked the government to impose similar taxes on Ugandan poultry products to create a level playing field in the poultry product exports sector.

In January, through a memo to stakeholders, the Directorate of Veterinary Services stopped all chicken, meat and egg importation to cushion local producers amid low demand from restaurants and eateries due to the COVID-19 disruptions in the economy.