Nigeria introduced a series of amended tax laws, including new value-added tax rates, according to a Jan. 31 report from the Hong Kong Trade Development Council. The changes, which were introduced Jan. 13, will increase VATs on certain companies from 5 percent to 7.5 percent, the report said, but will reduce VATs and other taxes on smaller firms. In addition, companies with “an annual turnover” of less than $69,180 will be exempt from VATs. The changes are aimed at stimulating growth of small and medium-sized companies, the report said.
Oman’s Ministry of Commerce and Industry will introduce a value-added tax in 2021, according to a Jan. 29 post from KPMG. Companies operating in Oman should prepare now for the VAT implementation based on the existing VAT legislation in the Gulf Cooperation Council (GCC) and the GCC Common VAT Framework Agreement, KPMG said.
Kenya will issue guidance for certain imports and plans to simplify tax incentives for companies operating in the country’s special economic zones in upcoming regulations, according to a Jan. 21 report from the Hong Kong Trade Development Council. A draft version of the regulations clarified how tax incentives can be applied to the movement of goods and services within the zones, the report said. The final regulations will “make clear” that no customs import duties will be applied to imports of goods into the zones, “regardless of whether they are for purposes of storage, exhibition, assembly, manufacture, further processing, or re-exporting,” the HKTDC said. No “trade-related restrictions” will be applied to any imports into the zones, the report said, and companies will not be subject to “minimum export requirements,” minimum quotas or “quantitative restrictions” when selling goods that originate in the zone, the report said. The comment period for the regulations ended Jan. 15, and Kenya has not yet released a date for final publication.
Jordan’s customs authority will create a pilot zone in the Aqaba Customs Center for processing container shipments using the digital customs platform TradeLens, according to a Jan. 20 Hong Kong Trade Development Council report. TradeLens was jointly developed by IBM and Maersk and its integration is part of a “number of recent initiatives” by Jordan to increase trade and improve customs clearance processes and costs, the report said. TradeLens will provide “efficiencies” for companies and government agencies throughout the supply chain by providing a “single and secure source of shipping data,” the HKTDC said. The online platform is already in use by Thailand (see 1908300043).
Ethiopia recently launched an online customs service intended to improve the speed of customs clearance for imports and exports “dramatically,” according to a Jan. 14 report from the Hong Kong Trade Development Council. The service, Ethiopia Electronic Single Window, was launched Jan. 4 and will reduce processing times for imports and exports from 44 days to 15 days. The country expects the processing time to eventually reach three days, the report said.
Egypt plans to increase transit toll rates along the Suez Canal for dry bulk vessels and liquefied petroleum gas carriers by 5 percent, according to a Jan. 9 report from the Hong Kong Trade Development Council. The new rates, announced Jan. 4, will not impact tolls for other types of shipping, including container vessels, tankers carrying oil and oil products, liquefied natural gas carriers, car carriers and “general cargo” vessels. The changes were made by the Suez Canal Authority after “careful analysis of developments in competitor routes,” studies on the developing maritime transport market and the “global trade outlook,” the report said. The rates reflect the agency’s desire to “maintain traffic growth momentum at a challenging time for global shipping.”
Bahrain and Saudi Arabia recently signed a customs agreement based on the World Customs Organization’s authorized economic operator program, according to a Dec. 31 report from Zawya, a Dubai-based news organization. The deal will better “promote the flow of goods between” the countries, the report said, and help both nations conform to international trading standards and regulations.
Pakistan is expected to increase cotton imports in 2020 due to a 17 percent reduction in domestic production compared with last year, according to a U.S. Department of Agriculture Foreign Agricultural Service report released Dec. 30. The low production was due to a combination of “intense hot” weather and a “severe” pest infestation. Imports are expected to increase to 4.4 million 480-pound bales, from last year’s 2.9 million, USDA said. Pakistan will also “continue to import better grades of cotton from the United States and other reliable sources to produce quality products for its textile export markets,” the report said.
The Ports Regulator of South Africa released new port tariffs for the period ranging from April 2002 to March 2021, according to a Dec. 13 report from the Hong Kong Trade Development Council. The announcement made “significant changes” to individual tariff categories, the HKTDC said. Rates will be increased for “marine services and related tariffs” by 5.5 percent on April 1, 2020, the HKTDC said, while export cargo duties will decrease by 20 percent. Export cargo dues of coal and “magnetite” will increase by 10 percent while other dues remain the same, the report said, but “caps will be applied.” Other changes were made to tariffs related to “locally registered vessels,” the HKTDC said.
The United Arab Emirates introduced an excise duty on “sweetened beverages” and vaping products beginning Dec. 1, according to a Dec. 12 report from the Hong Kong Trade Council. The country will levy a 50 percent tax on sweetened drinks and a 100 percent tax on “electronic smoking devices and tools, as well as the liquids used” with the devices, the report said. The duty on sweetened drinks applies to any beverage that has added sugar or other sweeteners, and applies to “liquid, concentrate, powder, extract, or any product that may be converted into a drink.” Exclusions include drinks that contain a minimum of 75 percent milk, milk products or baby formula.