East Africa Community heads of state have agreed to remove double taxation for investors whose companies operate in two or more member countries.
Now, an investor will only pay taxes in one country where the company has its headquarters. The meeting also issued a number of directives on how to fast track the East Africa Community Monetary union.
During 12th Ordinary Summit of the Heads of State of the East African Community, Tanzania president Jakaya Kikwete pointed out the need for the 5 member countries to increase investments among themselves.
The decision to remove double taxation is thought to most likely attract more investors into the region with a population of more than 126 million people.
Poor infrastructure between the partner states has been cited as one of the major challenge leading to an increase in the cost of transportation which translates to the consumers. He says the member countries should quickly upgrade their infrastructure to ease trade.
In another development, EAC member states have agreed to collaborate on diplomatic affairs, which are geared towards strengthening the diplomatic ties within the region.
President Jakaya Kikwete handed over the EAC top seat to Burundi's Pierre Nkurunzizza.