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Kenya removes import tax on maize

31/03/2017,

The Government removed import duties on maize and exempted bread and maize flour from value added tax for the next four months. Maize imports from countries that are not members of the East African Community (EAC) or the Common Market for Eastern and Southern Africa (COMESA) are subject to a 50 percent ad valorem tariff. Maize grain and maize flour prices increased significantly since the beginning of the year and in March were well above their year-earlier values as a result of the reduced 2016 output due to poor rains (FPMA Price Warning). Year-on-year inflation surged to 10.28 per cent in March compared to 6.45 per cent in the corresponding month of 2016, mainly driven up by drought-induced food price increases; the Government declared a national drought emergency on 10 February. The measures aim to reduce the costs of staple foods in the country.

Country: Kenya