This archive report was first published on 22 December 2019.
Kenya Imposes 16% VAT on Ugandan Milk Imports ¶
Kenya has imposed a 16% Value Added Tax (VAT) on milk imports from Uganda, sparking outrage among Ugandans who are threatening to retaliate.
According to reports, the decision was made during a bilateral trade meeting between Kenyan and Ugandan legislators on Friday, December 20, 2019.
Ugandans are up in arms over the new levy, with some calling for their government to impose heavier taxes on Kenyan products such as juices and Kenya Airways.
Ugandan investor Robert Kabushenga ignited a heated debate on Twitter, suggesting that his country should impose up to 35% tax on Kenyan juices and vegetables, and slap Kenya Airways with heavy landing fees.
"We should retaliate! Impose 35% on their packed juice, mangoes and vegetables, then hit Kenya Airways with mega landing fees for good measure. We should stop this trying to be good neighbours nonsense every time," Kabushenga tweeted.
Other Ugandans have also taken to social media to express their outrage, with some calling for their government to focus on other business frontiers to export its surplus milk to.
"We should focus on DRC, and also look at maximising the Tanzanian route to Uganda. Ugandans pay a lot to clear goods at Mombasa and yet it is cheaper to clear the same goods at Dar el Salaam Port. We should stop being the nice guys, its time we looked for options," Martin tweeted.
Ugandans are also criticizing the East African Community (EAC) for not protecting their interests.
"The problem is our diplomacy is conducted by people who are not stakeholders. In Kenya, the diplomats work on behalf of their business interests," Kabushenga claimed.
Published on December 22, 2019, at 6:19 PM.
