East Africa bloc mulls regional tax treaty framework to boost integration
NAIROBI, Oct. 1 (Xinhua) — The East Africa Community (EAC) bloc plans to develop a regional tax treaty framework to boost regional integration, an official said on Tuesday.
Doris Akol, commissioner general, Uganda Revenue Authority told Xinhua in Nairobi that once the treaty is in place the trading bloc will negotiate double taxation agreements jointly with other non-EAC countries.
“Currently each of the partner states negotiates with other countries on a bilateral basis. The regional taxation framework will help to reduce the harmful effects of tax competition in the EAC as each country seeks to attract foreign investors,” said Akol on the sidelines of the seventh pan Africa conference on illicit financial flows and taxation.
The three-day annual gathering will bring together policymakers, academia, civil society from Africa to review efforts to curb illicit financial flows and enhance domestic resource mobilization in the continent.
EAC members states include Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan.
Akol said that so far a draft EAC treaty has been developed which will receive inputs from all relevant stakeholders.
She said that the economic bloc is also making progress towards harmonizes its tax regime in order to promote regional integration.
Akol added that revenues authorities across the region are keen to ensure that there is mutual recognition of each of the respective national tax systems in order to enhance revenue collection and reduction tax evasion.