ARE HARMONISED TAX REGIMES THE WAY FORWARD

Mentioning of taxes sets of a series of spasms amid fears of crackdown for many defaulters. Taxes may be a blessing in disguise or some severe punishment at times, and business acts in a way to minimize the stress caused by the tax man. Taxes designed for protectionist stances or revenue production, with a focus on efficient use of scarce resources.
Tariffs in many tax blocs are designed for a purpose of bringing all members under one fold to boost internal markets and reinvent the way the purchases are done.
Whether SADC, East African Community or COMESA. Sole purposes is to allow for that resultant trade boost between members and shut out or restrain block trade within and sourcing externally becomes costly.
The problems faced by the members to the SADC, EAC and COMESA are the same ranging from.
The member country parliaments have problems passing common tariff legislations on common tax base for they are not sure whether it’s of national interest in the long run.
The merging of the multiplicity of tax legislations from individual member states into just a few ones is problematic and consensus is hard to reach.
The short term pains in loss of revenue usually overshadow long term gains over time like in an extended and invigorated internal efficient demand -supply chain between members.
There is dilemma in sharing of revenues, and this is not only alien to East Africa, SADC but is a problem in almost all economic blocs. Each national exchequer has own interest rates and are more interested in curbing inflation than stimulating growth and priorities in this area are as varying as the members states themselves.
Many tax authorities also prefer to legislate and implement flat taxes which are squeezing the poor harder as they have less disposable incomes while affluent ones loosen their belts and therefore not deemed fair taxes. This can turn electorate in member countries against their legislators, more likely to look like a vice to worsen their already near the edge lifestyles.
Harmonized tax base can be slippery to competitiveness eventually forcing members who have robust competitive economies to be pulled back as stagnant or less attractive investment areas, the fallout from such many send the investors running, a case of Ireland, fear of loosing its competitiveness as a robust economy with low taxes in encouraging more investment Europe, when a common tariff legislation is passed in the EU they might loose out on current advantages they have.
In east Africa Kenya, Uganda, Tanzania, VAT payable on imported goods used to be 16%, 17%, 20%, respectively. That will have to change as they all come up with common tariffs and that directly impacts on productivity as it affects raw materials, services and other goods from outside bloc.
Harmonized tax regimes no longer seem like reaching for the sun, more so that some countries which belong to two or more different blocs may be conduits to dodge taxes here and dump untaxed goods in another bloc where its a member