RWANDA, DR CONGO REVIEW CROSS-BORDER TRADE TAX
Rwanda and DR Congo review cross-border trade during a bilateral meeting in kigali.
Rwanda and DR Congo are reviewing the cross-border trade tax. This is after both nations agree to come up with a list of products, business sizes that will benefit the tax-free cross-border trade.
The bilateral meeting had both nation Ministers for Trade in attendance. Meanwhile, the deal which was originally signed in 2016 is still not functioning.
The simplified trade regime (STR) was launched in 2007 as trade is vital for every nation. The launch was by the Common Market for Eastern and Southern Africa (COMESA) and the East African Community (EAC). With the aim to facilitate small-scale cross-border trade.
Rwanda Minister for Trade and Industry, Soraya Hakuziyaremye said “There is a proposal that businesspeople with goods not exceeding US$500 should be the ones to benefit from the Simplified Trade Regime. She also said this is a proposal they (DR Congo) are taking to COMESA, and we will discuss it.”
During the meeting, DR Congo present a proposal for what they will implement and urge Rwanda to do the same within a six month period. According to DR Congo reps, they have identify eligible small-scale cross-border traders.
Congolese Minister for External Trade Lambert Matuku Memas said “If we agree on a list of eligible products under the regime. I think this will also help to eliminate the traders who exploit the system.”
The total cross-border trade agreement by both nation is value at US$120 million in 2018 according to Hakuziyaremye.