The most popular one is Kenya's reneging on Levyin

2022-08-03
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Kenya went back and imposed a 25% tariff on imported packaging paper release date: Source: Hugo editor: China Packaging browsing times: 1366 copyright and disclaimer core tip: within three months after the East African community decided to reduce the 25% tariff on imported packaging paper to 10%, Kenya, a member of the East African community, re imposed a 25% tariff, which was discussed by people in Kenya, Call on the government not to go against its commitments

[China Packaging News] less than three months after the East African community decided to reduce the 25% tariff on imported packaging paper to 10%, Kenya, one of the member countries, re imposed the 25% tariff. People in the Kenyan industry have talked about this one after another, calling on the government not to act willfully. The consequence is that the government often seriously violates its commitments

it is learned from recent reports by African media that in order to enhance the competitiveness of the packaging industry of the East African community, the member states of the East African community have decided to reduce the tariff of 25% on imported packaging paper to 10%. However, less than three months after the decision was made, the Kenyan government went back to the old way and imposed a high tariff of 25% on packaging paper not manufactured in the East African community, which is bound to reduce the competitiveness of Kenya's packaging industry and paper product processing machinery industry

this brings Kenya back to the previous situation: high product packaging costs lead to high product prices, poor materials, and reduced product competitiveness. As a result, the characteristics of Kenya relaxation experimental machine and the installation of the equipment are often known. It is common knowledge that the development of many related industries in Kenya has been inhibited

reintroducing the 25% tariff policy on imported packaging paper means that Kenya will become the only country in the East African community to impose a 25% tariff on imported paper. This unstable policy obviously lacks proper consideration. Kenya's companies engaged in this industry have long hoped that the tax rate will be reduced so as to enhance the competitiveness of the company's products and achieve joint research and collaborative innovation; To speed up the construction of the horizontal innovation system, many companies will also reduce the packaging price of their products. Reducing the tariff on packaging paper can also promote the development of other related industries and promote domestic employment

the re levying of the high tariff of 25% also means that the price of local packaging materials will rise, the sales volume of products will decline, the survival of many companies will even be threatened, and the prices of other essential consumer goods will also rise, such as corn, wheat flour, bread, food, beverage, books, drugs and tea products

according to the analysis of insiders, it is obviously unwise for Kenya to impose a tariff of 25% on imported packaging paper, compared with the 10% tax rate imposed by other countries in the East African community

in addition, compared with other countries, such as Tanzania, which implements zero tariff on packaging paper imported from the southern African Development Community (SADC), and Uganda, which implements 10% tariff on packaging paper imported from the common market for Eastern and southern Africa (COMESA), these countries impose lower tax rates than Kenya, and Kenya's high product packaging fees are bound to make Kenyan products lose competitiveness

the Kenyan government has different views on this. The Kenyan government says that paper is a very important packaging material. In order to promote the development of Kenya's domestic packaging industry, it is necessary to impose high tariffs on imported packaging paper

that said, however, due to the underdeveloped domestic packaging industry in Kenya, many packaging papers need to be imported from abroad. The high tax rate imposed on imported packaging paper has led to the increase in the packaging cost of many products, and the increase in product prices is ultimately paid by domestic consumers in Kenya. The Kenyan government should consider comprehensively, weigh the advantages and disadvantages, and reduce the tax rate to 10%. It is more reasonable to be in line with other East African Community countries, rather than go it alone

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