The East African Business Council (EABC) has urged East African Community (EAC) governments to adopt harmonized fiscal policies and taxes to stimulate business growth and increase intra-regional trade.
This call to action comes ahead of pre-budget consultations, with the aim of boosting economic integration and prosperity across the region.
Currently, intra-EAC trade stands at 15%, valued at $12.1 billion, but EABC aims to increase this to 25% ($80 billion) to unlock the region's full potential.
Uganda, with an economy reaching shs. 202.7 trillion (USD 53.7 billion) in FY 2023/24, is poised to drive regional economic integration through business growth driven by the right policies.
To achieve this goal, EABC has presented key proposals to the parliamentary committee, including:
Uniform EAC CET Application. Reducing stays of application to promote regional value addition and sourcing.
Tax Harmonization. Eliminating discriminatory taxes and charges on EAC-originating goods to lower cross-border trade costs.
Monetary Union Alignment. Harmonizing fiscal and monetary policies to pave the way for the 2032 EAC single currency.
Fight Illicit Trade. Implementing a regional Track and Trace system to curb revenue losses and protect jobs.
Pre-Budget Consultations. Synchronizing pre-budget consultations across the region to focus on tax regime harmonization.
"We believe fiscal policies must benefit both businesses and people," said Simon Kaheru, EABC Vice-Chair, Uganda Chapter. "By harmonizing taxes and trade regulations, EAC governments can create more jobs, increase incomes, and strengthen the regional economy, with Uganda taking a leading role in this effort."
Mp Dickson Kateshumbwa who chaired the meeting welcomed the EABC's submission, urging the private sector to engage more boldly with governments.
"We agree with your recommendations, but we believe the private sector should do more. Engage with us consistently throughout the year, as there is much more you need to do, even as you expect governments to take further action," he said.
The EABC's recommendations aim to deepen EAC integration and trade, driving GDP growth and delivering tangible benefits for East Africans.
With the region's economic growth projected at 5.7% in 2025, the EABC's efforts are crucial in promoting sustainable prosperity across the region.