The East African Community (EAC) may raise taxes on clothing and footwear imports. Taxes may go up to 50 per cent to reduce imports and help revive the region’s ailing textile and leather sectors.

The East African Community comprises Burundi, Kenya, Rwanda, South Sudan, Tanzania and Uganda.

Over the years, the clothing and shoe manufacturing industries in the EAC have collapsed due to the emergence of informal sector trade in used clothes and shoes and the impact of trade liberalization.

Among the measures suggested include a three-year tax waiver for textile raw materials and shoe manufacturing equipment that are not available locally. A ban on export of raw hides and skins is also proposed.

There may be a 40 per cent tax on readymade garments or five dollars a kg, whichever is cheaper. For the footwear sector, the proposal is to increase the common external tariff on new shoes from 25 per cent to 50 per cent or 20 dollars a pair (for leather shoes) and five dollars a pair (for plastic shoes), whichever is higher.

If the proposals are accepted, it will increase the price of imported clothing and footwear in the six countries of the EAC region.