Uganda introduced several tax-related measures in its 2019 budget proposal, including regulations that would expand the list of goods that are exempt from value-added taxes, according to a June 17 report from KPMG. The measures would allow VAT exemptions for “aircraft insurance services, rice mills and agricultural sprayers, supplies of drugs and medicines, imported mathematical sets and certain other items used in education, woodworking machines, welding machines, sewing machines, certain feasibility studies, and earth-moving equipment,” KPMG said. The measures would also reduce the “withholding rate” of VATs to 6 percent, KPMG said. The changes are expected to take effect July 1.

Kenya is considering several tax- and trade-related measures that would impact imports and certain aspects of the country’s value-added tax regulations, according to a June 17 report from KPMG. The measures, included in Kenya’s 2019 budget proposal, would expand the definition of “supply of imported services” to apply to people who are not registered for VAT, the report said, and would expand the scope of VATs to include goods “made through the digital marketplace.” The measures would also change the “timing of the supply of imported goods” to include “the time the goods are removed from a special economic zone,” KPMG said. In addition, the measures would reduce the rate of the VAT withholding from 6 percent to 2 percent and increase the excise tax rate on alcohol and tobacco products. Lastly, the measures would allow tax exemptions for equipment used for the development of “solar and wind energy” and allow VAT exemptions for motherboards and “related components” made in Kenya and “services and machinery related to plastic recycling.”

Adding in the unaffiliated African countries to the African Continental Free Trade Agreement remains an important step for the deal, said Giovanie Biha, the deputy executive secretary of the United Nation's Economic Commission for Africa in an ECA news release. “AfCFTA legally entered into force but for it to deliver its transformative economic potential, the signatory countries -- and the few countries that have not yet signed -- must rapidly join and ratify the Agreement to ensure that the continent moves forward together as one entity,” Biha said during a meeting of the African Ministers of Trade. Biha said "difficult decisions," including tariff offer scheduling and finalized rules of origin, still need to be made and "compromises sought, as we transform the AfCFTA legal text into an operable instrument." Albert Muchanga, commissioner for trade and industry of the African Union Commission, said "the AfCFTA is a continuation of a long journey that started with the establishment of Regional Economic Communities as building blocks of the African Economic Community. From here, Africa has to move to the next stages of customs union, common market, monetary union and eventually African Economic Community.” The African Ministers of Trade will next meet in July at the Niamey African Union Summit.

Saudi Arabia announced new excise taxes on e-cigarettes and sweetened drinks, according to a May 28 report from the Hong Kong Trade Development Council. Under an amendment to the Excise Tax Agreement of the States of the Gulf Cooperation Council, e-cigarettes and tools will be taxed at 100 percent and sweetened beverages will be taxed at 50 percent, the report said. The changes took effect May 18.

Kenyan President Uhuru Kenyatta ordered government agencies to stop additional inspections of imported goods after he said businesses have complained of too many inspections, according to a June 1 report from Capital FM Kenya. Kenyatta told officials at the Kenya Bureau of Standards, Kenya Revenue Authority and the Kenya Ports Authority to reduce inspections on pre-inspected imports unless the goods are “legitimately suspected to be entering the country illegally,” the report said. “I ask them to honor prior inspection done by their appointed agents,” Kenyatta said, according to the report. “Imported goods therefore, should not be subjected to additional inspection at the port of entry except for cases legitimately suspected not to conform to the set standards.”

The African Continental Free Trade Area came into force May 30, though negotiations continue on exactly how the FTA will operate, according to press reports. The agreement legally took effect at midnight, but the countries that have signed it have up until July to work out the details of how it will work, according to the Kenya-based East African. That’s when leaders from the AfCFTA countries will hold a summit where the launch of the “operational phase” of the agreement will be announced, said a report on the Nigerian Vanguard website. Until then, negotiations continue on issues like rules of origin, tariff concessions and non-tariff barriers, Rwanda-based The New Times said in a report. Then, after the July 7 summit, member countries will enter phase two of negotiations on investment, competition policy and intellectual property rights, The New Times report said.

Lebanon recently imposed a 2 percent tariff on all imports until 2022 except for “pharmaceuticals, electric cars, and raw materials for industrial and agricultural products,” according to a May 30 report from the Hong Kong Trade Development Council. Lebanon also announced a 10 percent tariff rate will apply to 20 products that include certain foods, clothing and “industrial components” that are “deemed as being ‘dumped’ onto the Lebanese market,” the report said. Other products included under the 10 percent tariff are “flour, dairy products, detergents, furniture, leather shoes, bulgur, electrical machinery, aluminium profiles, clothes, wafers and biscuits, vehicle bodywork, metal pipes, confectionary and gums, marble and granite tiles,” HKTDC said. The tax, placed on products the country believes are “being imported in large quantities at prices lower than those produced locally” will be subject to the tariff for five years, the report said. The move was made after a May 22 Lebanese Cabinet meeting, HKTDC said. The report said the tariff increase was intended to reduce trade imbalances and spur local production. Lebanon’s Industry Minister Wael Abu Faour said “this will protect the Lebanese manufacturing sector, contribute to lowering trade deficit and revive a large number of industries," according to the report.

Turkey recently amended its customs regulations to end a de minimis exemption for low-value goods imported by mail or express courier. The exemption, which previously allowed goods valued at less than €22 ($24.55) to enter duty-free, is being abolished entirely, according to an alert from Turkish law firm BTS & Partners that was posted by Mondaq. The decree, which was published May 15, also amended restrictions on importation of mobile phones carried by passengers. The changes take effect 15 days after publication, i.e., May 30, according to an unofficial translation.

India’s Commerce Ministry is attempting to “strengthen” trade ties with Africa, according to a May 8 report by the India Brand Equity Foundation. India spoke with its embassies in 11 African countries in early May to discuss buyer-supplier “matchmaking,” Indian “trade exhibitions” in Africa and “frequent visits of policy makers, chamber of commerce and investors for familiarization with local business.” The Ministry is looking for an “effective export strategy” to “engage the Indian business community in Africa” and “instill greater confidence amongst trade partners,” the report said.

Namibia will launch a new customs and tax agency in October as part of a broader trade facilitation effort underway in the country, according to a report in the Namibia Economist. The new Namibia Revenue Agency (NAMRA) "aims for faster clearance times for legitimate trade and increased transparency in regulatory processes and decision-making,” said Acting Customs Commissioner Thandi Hambira, according to the report. Namibia will also create a “Customs Information Centre,” which will “offer online declaration of cargo to be accessed from the clients office as well as pre-arrival processing for perishables, medicaments, ship spares” along with other goods, she said. “Although the client reserves freedom of transit, container inspections at client, importer and exporter premises will also be carried out.” NAMRA will replace the Customs & Excise and Inland Revenue departments in the Ministry of Finance, the report said.