The East African Business Council (EABC), an apex body of private investors, has urged the East African Community (EAC) to fast track the ratification of double taxation agreement in order to boost intraregional trade.
Peter Mathuki, CEO of EABC, said that the EAC double taxation agreement (EAC DTA) will reduce the after-tax cost related to trade and investment in the trading bloc.
“Failure to eliminate double taxation and discrimination has seen EAC region and partners states become less competitive than other regions,” Mathuki said during the EAC double taxation agreement virtual sensitisation workshop.
EAC member states include Kenya, Uganda, Tanzania, Burundi, Rwanda and South Sudan.
Mathuki, who is also the incoming Secretary General of the regional trading bloc, said that the multilateral treaty for the avoidance of double taxation will also prevent fiscal evasion with respect to taxes on income.
He observed that ratification of the agreement will eliminate tax distortions and ensure that the region becomes an attractive destination for both foreign and local investors.