East Africa edges towards monetary union – safeguards in place to avoid Eurozone type of crisis

All countries in the East African Community will struggle to attain the tax to GDP ratio of 25 percent, given their relatively narrow tax bases, the different tax collection regimes and the fact that most of the region’s businesses are informal and thus do not pay tax.

Presently, Kenya has the highest tax to GDP ratio at about 23 percent, Tanzania is at 18 percent, while Uganda and Rwanda tie at 12.6 percent.

Source: Africa Review

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