30 per cent tax hurts tyres industry

Bandag, an automobile service company claims high customs tariffs on tyres is hurting the business in Rwanda.

Bandag, an automobile service company claims high customs tariffs on tyres is hurting the business in Rwanda.

Pierantonio Costa the founder of the company recently said, “Their Clients in the country now source the tyres in other East African countries selling the same tyres cheaply.”
 “Kenya, Uganda and Tanzania charge 10 per cent tariffs”, he said.

He asked the government revise taxes on tyres, saying transport is key if a country is to develop.

However, Gerald Nkusi Mukubu, director for taxpayer services in Rwanda Revenue Authority said tyres are finished goods. And, are taxed according to the 2006 law on finished goods.

He said the  customs tariffs for finished imported products is 30 per cent, 15 per cent for semi- finished imported products and zero on fertilisers and drugs.

Mukubu added that the 10 per cent tax Bandag claims is unrealistic.  East Africa community common external tariffs for imported finished goods are 25 per cent.

“Rwanda will joint the rest to implement common external tariffs in 2009 and we hope to cut our tariffs on finished goods up to 25 per cent,” Mukubu said.
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