By Elite New Reporter
Dairy farmers in Uganda are crying foul after learning that the government of Kenya has resolved to impose 16 percent value added tax (VAT) on milk imports from Uganda, as part of measures to protect local dairy farmers and calm the simmering trade tensions between the two neighbouring nations.
The agreement was reached during a bilateral meeting between trade officials from the two countries on Friday.
“The meeting deliberated on possible measures to remedy the concerns of Kenya and more less agreed that VAT be imposed on milk imports into Kenya since the same is imposed by Uganda and noted that this may not raise unnecessary issues of discrimination or retaliation,” Kenya’s Principal Secretary in the department of trade Chris Kiptoo told the media.
During the bilateral meeting which was held in Kampala the two countries also deliberated on other issues hindering trade between them including levies and taxes imposed on both local and imported products, such as road levy, VAT and withholding tax.
Other concerns included delays in clearing goods and issues of parking space at the port of entry particularly the border post.
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