East African Community(EAC) member states should reduce corporate tax rate to 20 per cent across the region to cushion businesses from financial strains, the East Africa Business Council (EABC) has said. Value Added Tax rate should also come down to at least 12 per cent during the Covid–19 period. Kenya has so far reduced corporate tax from 30 per cent, which has been standard across the region, to 25 per cent. In support of manufacturers and investors, EAC partner states should allocate enough funds to cater for outstanding VAT refunds and domestic debts, which will boost liquidity in the economy. Kenya and Rwanda are among those that have allocated funds for VAT refunds and pending bills owed to suppliers.

Source: The Star May 03, 2020 09:56 UTC