Money Markets
Kenya proposes ways of merging trading blocs
President Mwai Kibaki and other Heads of State and Government pose for a group photo after the 13th COMESA Summit in Victoria Falls, Zimbabwe. Kenya says one of the ways of ensuring the process comes to fruition is appreciating special needs of member economies. Photo/FILE
Posted Wednesday, February 24 2010 at 00:00
With the blocs merged previously import substituting industries that were important sources of revenue could contract,” the institute said.
Trade taxes
Statistics by the Organisation for Economic Co-operation and Development (OECD) showed that in Sub-Saharan African countries trade taxes still account for an average 25 per cent of total tax revenue and that value added tax (VAT) collection at border points represented more than 50 per cent of total VAT revenues.
Mr Ali concurred with this view saying that such reliance on trade on taxes could pose serious challenges.
Kenya Association of Manufacturers (KAM) CEO, Betty Maina, said the business community played a significant role in the realisation of such integration efforts and urged regional governments to ensure they were sufficiently involved.
“Most things in the integration get deferred because business groups are not agreeing.”
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