EAC proposes an extra 10% tax on imported textiles to protect local manufucturers

  The Common External Tariff (CET) on textiles ought to be raised to 35 percent, the maximum tax bracket under the EAC, according to The East African Sectoral Council on Trade, which is the region's top body for investment and trade.

Under the current three-band tariff structure of the EAC, which went into effect on January 1, 2005, finished goods imported into the regional bloc are subject to a duty of 25%, intermediate goods are subject to a duty of 10%, and raw materials also subject to a duty of 0%.

The East African Community's proposal to impose top taxes on textiles has sparked concerns in the textile industry. The proposal, which aims to protect the local textile industry and promote regional integration, could lead to increased prices for consumers and harm the already struggling industry.


In order to promote intra-EAC trade on the products, the council urges the member states to set up a digital platform to support information exchange on cotton harvesting and cotton lint commerce.


Partner states are also encouraged  to adopt the usage of traditional / folkloric attire as government dresses for official ceremonies as part of the promotion of Buy East Africa Build East Africa (BEABEA).
As a means of promoting the textile sector, Kenya has already encouraged civil servants to dress in African clothing on Fridays.


As much as textile manufacturers in the East African region have been facing challenges due to cheap imports from China and other Asian countries consequently leading to the closure of many textile factories and job losses, the proposed tax could make it even harder for the industry to compete and survive.


On the other hand, the proposal has been welcomed by local textile manufacturers who argue that it will help protect local jobs and promote investment in the industry. They believe that the tax will level the playing field and enable them to compete with cheap imports.


However, this tax will ultimately harm consumers, as it will lead to higher prices for textiles. The proposal also goes against the principles of free trade and regional integration, which are central to the EAC's mission.


None the less, the textile industry is an important sector for many East African countries, providing jobs and income for millions of people. It is therefore important to strike a balance between protecting local industries and promoting regional integration, while also ensuring that consumers are not adversely affected.