This archive report was first published on 25 April 2020.
Published on April 25, 2020, the East African Business Council (EABC) has called for tax waivers for regional carriers to help them survive the Covid-19 pandemic.
The EABC, in a paper titled 'EABC Position Paper on Facilitating Air Cargo Operations in the EAC Region During Covid-19 Outbreak', recommends that the EAC Heads of State Summit consider waiving all import duties and VAT by air during the crisis.
According to Dr. Peter Mathuki, the EABC chief executive, the long-term effect of this would be to increase inter-regional air transport traffic and frequencies by 41 per cent and reduce flight time.
It would also reduce air transport cost for both passenger and cargo by 10 per cent, create an additional 46,320 jobs, and generate $202.1 million per annum in the GDP for the partner states post-pandemic.
Dr. Mathuki noted that due to the global demand and supply disruptions of fresh produce, the cost of air freight in the EAC has escalated, making the region's export produce uncompetitive.
Kenya, for instance, has seen a 75 per cent decline in the volume of fresh produce out of JKIA, from a weekly 5,000 tonnes to 1,300 tonnes.
Private sector players are seeking tax waivers to enable regional carriers to continue operating cargo flights to freight fresh produce to international markets.
