Businesses watch closely as East Africa prepares budgets

Businesses watch closely as East Africa prepares budgets

The governments of Kenya, Rwanda, Tanzania and Uganda are making final adjustments to their budget plans, which will be unveiled next Thursday.

The East African states are expected to focus on reducing taxes to stimulate their economies.

The Covid-19 pandemic has pushed economies in the region into freefall and the private sector is hoping governments will come up with measures to revive growth.

Businesses want a range of taxes cut, especially duties on imports of raw materials and petroleum products.

Uganda plans to suspend corporation tax payments for April to June, while taxes on manufacturing, horticulture and tourism will be deferred to September.

Kenya has reduced the pay-as-you-earn tax on wages and the East African Business Council is calling for this to be introduced in all countries in the region.

Businesses, both large and small, will be watching closely this weekend for any signs from finance ministers in East Africa of what they plan to unveil for their budgets.

Source: BBC

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