KPMG 2018 East Africa Budget Analysis
As has been the tradition, the East African Community (EAC) Finance Ministers presented their countries’ respective budgets modelled along the theme of industrialization for job creation and shared prosperity. The EAC countries registered impressive GDP growth rates in 2018 and the outlook is more promising. Against this backdrop, the countries presented their largest ever budgets. Inevitably, funding these ambitious projects called for pretty aggressive tax proposals to shore up revenues.
With Kenya re-jigging its presumptive tax regime, Uganda enhancing its excise duty take from financial services and introducing withholding VAT, Tanzania reviewing its gaming tax revenue and Rwanda introducing transfer pricing documentation requirements and capital gains on shares, it is very clear that revenue authorities across EAC compare notes on best practice in revenue mobilization.
We expect a raft of legislative Bills across the region to anchor the tax proposals in law and shall update you as and when these become available. In the interim, we have reviewed the budget speeches and we provide below a summary of the budget proposals and other tax measures across East Africa.
Please get in touch with us for discussions on how the budget measures will affect your business.