EAC bloc approves series of customs duty reforms for 2026/27 in efforts to protect domestic industries
DODOMA: EAST African Community (EAC) member states have approved a series of customs duty reforms for the 2026/27 financial year aimed at protecting domestic industries, attracting investment, reducing production costs and creating jobs across the region.
Presenting the Government Revenue and Expenditure Estimates for 2026/27 in the National Assembly today, June 11, 2026, Finance Minister Ambassador Khamis Mussa Omar said the measures were agreed upon during the EAC Pre-Budget Consultations Meeting of Finance Ministers held in Arusha on May 15, 2026.
The reforms include higher import duties on selected products, lower tariffs on electric vehicles and duty remission schemes on industrial raw materials to support local manufacturing and enhance regional competitiveness.
Ambassador Omar said the EAC also proposed amendments to the East African Community Customs Management Act, 2004, to address implementation challenges and strengthen customs administration across partner states.
Under the new measures, import duty on decorative building stones will increase from 25 percent to 35 percent or two US dollars per square metre, whichever is higher, to encourage the use of locally available construction materials.
The regional bloc also approved higher tariffs on imported aluminium bars, rods and profiles, soap products, welding electrodes, cotton grey fabrics, plastic doors and windows, ceramic tiles and nails to protect local industries and curb customs valuation fraud.
To promote sustainable transport, EAC partner states agreed to reduce import duty on electric vehicles from 25 percent to 10 percent. The measure is expected to encourage the adoption of clean energy technologies and reduce reliance on petroleum products.
The reforms further introduce a 10 percent import duty on crude palm oil, which was previously exempt, to encourage the use of locally produced oilseeds and address product misclassification by some importers.
Several duty remission schemes were also approved on packaging materials, paper products, aluminium manufacturing inputs, veterinary product packaging and steel wire used in the production of concrete electricity poles.
According to Ambassador Omar, the measures are expected to strengthen industrialisation, stimulate investment, increase employment opportunities and boost government revenue across the East African Community.
He said the reforms will also support economic transformation efforts by enhancing the competitiveness of local producers while reducing production costs in key sectors of the economy.
