EAC Countries Remove Tax on Railway Materials

{{East Africa Community member states have removed duties on imported railway equipment to accelerate rail construction in the region.}}

The exemption is contained in the East African Community (EAC) gazette notice published on June 30.

“Any of the following goods, which are imported for use by an operator approved by a competent authority responsible for railways in Partner States and in such quantities as the commissioner may specify [are exempt]” reads the Gazette notice in part.

In meetings held in Uganda last month, President Uhuru Kenyatta, President Yoweri Museveni of Uganda and President Paul Kagame of Rwanda vowed to extend this modern rail to Kampala and Kigali.

{{Exemptions}}

These goods include wagons, coaches, traffic control instruments, construction and repair equipment as well as railway line signs.

The exemptions are part of a wider plan in the region to expand and rehabilitate the rail network.

Railway handles about 10% of the region’s cargo, a situation that has taken a heavy toll on the region’s road infrastructure.

Cargo arriving at the port of Mombasa is expected to grow at a rate of eight per cent per annum in coming years, raising the imperative for countries in the East African region to find an alternative to road transport.

{NMG}