South Sudan and Tanzania are set to begin implementing the Regional Electronic Cargo Tracking System (RECTS) to boost tax collection in the East African Community (EAC) trading bloc, an official said on Monday.
Ukur Yatani, acting cabinet secretary for National Treasury, said that Kenya is already collaborating with other northern corridor countries, Uganda and Rwanda, to implement the system that is used to monitor cargo transiting through Kenya to neighboring countries within the EAC.
“Plans are underway to roll out the RECTS to include South Sudan, Tanzania and ultimately to destinations outside the EAC bloc,” Yatani said during the launch of 2019 taxpayer’s month.
He said that the tracking system aims to avoid cases of dumping where goods received at the port of Mombasa and destined to neighboring countries are instead sold in the Kenyan market. Kenya is keen to ensure that the port of Mombasa becomes the preferred trade route for goods traded between east and central African nations and the rest of the world.
Yatani said that the real-time cargo tracking system of transit goods will also help to boost intra-regional trade.
He said that the Kenya Revenue Authority has also put in place mechanisms to ensure that local businesses and cross-border trade thrive through the elimination of customs challenges that hamper regional trade.
Source: Xinhuanet