East Africa - Over $500 billion lost in tax due to pirated products every year

September 4th, 2009

 

 

Nairobi (Kenya) - The East African Community member states are losing up to $500 billion annually in taxes due to piracy.
Pirated and counterfeit goods are killing local industries and the fight against them requires joint, concerted effort.

Omar Issa, chief executive officer of the Investment Climate Facility, told the 2nd East African Investment Conference that in Kenya, 30 per cent of pharmaceutical products on the market are counterfeit.

Participants were shocked to hear that Eveready, the main manufacturer of dry cells, had lost 70 per cent of its business to counterfeit products imported cheaply into the region.

Mr Issa said: “Counterfeit products and pirated goods are killing small and medium enterprises in the region; this calls for urgent attention.”

As Mr Issa called for a regional front to fight the vice, the EAC proposed stiff legal deterrents that could see offenders fined heavily or jailed for life.

“We need common policy and legislation in place. We should collect data and know what exactly is happening in member states and take appropriate action,” Mr Issa told the conference.

He called on MPs of the five countries to support a Bill on counterfeit and piracy that will soon be taken to the East African Legislative Assembly for debate.

A draft EAC policy on anti-counterfeiting, anti-piracy and other violations of intellectual property rights commissioned last year by the East African Community Secretariat recommends that trading in counterfeit or pirated goods in the region be treated as a serious crime matching drug trafficking, money laundering and even murder.

Anybody found guilty of the offence should face stiff penalties. And depending on the circumstances and quantity, those found guilty should serve jail terms as long as 10 years with no option of a fine.

Elevating counterfeiting and piracy to the same level as drug trafficking or money laundering will act as a major deterrent to the vice, besides reducing loss of lives associated with the illicit trade and loss of revenue by companies and governments.

 

source.The East African (Kenya) -nca