Court grants interim injunction restraining Government of Uganda from collecting Excise Duty from British American Tobacco (U) Ltd.

Posted in Press Release

East African Court of Justice Arusha, 26th January 2018:

The First Instance Division granted an interim injunction to the British American Tobacco (BAT) (Uganda) Limited, restraining and prohibiting the Government of Uganda and the Uganda Revenue Authority from collect excise duty due to discriminatory rates, pending hearing and determination of the Reference.

The Court in its ruling further stated that it was aware that the interim injunction in this case would inhibit the URA’s right to collect the additional duties billed to the Applicant, however, that the right must be weighed against the injustice of leaving the Applicant company to bear the brunt of a possibly misconstrued law that could indict it to the payment of exorbitant funds in excise duty pending the determination of the case.

The Applicant in its Application stated that, the Act is discriminatory in as far as it imposed a higher excise duty rate on goods imported into Uganda from Kenya and imposed a lower rate on goods manufactured in Uganda. BAT contended that goods from the East Africa Community be given equal treatment.

The Court also took the view that the justice of the matter dictates that the Respondent would suffer less injury from being temporarily prevented from exercising its right to collect the extra excise duty billed to the Applicant if the interim orders sought in the present Application were granted, than the injury the Applicant stands to suffer as the consequence of paying the additional duty. 

BAT Uganda Limited (the Applicant), filed a case before the Court challenging the legality of the excise duty (Amendment) Act No. 11 of 2017 which was enacted in July 2017. The Applicant argues that the act contravenes the Treaty, the Customs Union and the Common Market Protocols for the Establishment of the East African Community. The Applicant contends that the Act infringes Article 6(d), (e), 7(1) (c) 75(1), (4), (6) & 80(1) (f) of the Treaty, Articles 15 (1) & (2) of the Customs Union Protocol, as well as Articles 4,5, 6 & 32) of the Common Market Protocol.

In his Application, BAT submitted that in 2014, Uganda enacted the Excise Duty Act No. 11 of 2014, which among other things, made provision for an excise duty on cigarettes that uniformly applied to all such goods originating from any of the EAC Partner States. However in 2017, the said Act was amended to create a distinction between locally manufactured goods and imported goods.

Under the Amended Act, whereas the Applicant’s goods were initially treated as locally manufactured goods, they were subsequently re-classified by URA to be goods from a foreign country on account of their originating from Kenya, and subjected to the applicable excise duty.

BAT hence filed the Reference challenging the legality of sections 2(a) and (b) of Uganda Excise Duty in question.

The Ruling was delivered by Hon. Lady Justice Monica Mugenyi (Principal Judge).

Mr. Peter Kauma, representing the Applicant, Ms. Margret Nabakooza, Mr. Richard Adrole representing the Respondent, the Attorney General of Uganda, were all present to receive the ruling of the Court.

-ENDS-

For more information, please contact:

Yufnalis Okubo
Registrar
East African Court of Justice
Arusha, Tanzania
Tel: +255 27 2162149
mail: Okubo [at] eachq.org
www.eacj.org

About the East African Court of Justice:

The East African Court of Justice (EACJ or ‘the Court’), is one of the organs of the East African Community established under Article 9 of the Treaty for the Establishment of the East African Community. Established in November 2001, the Court’s major responsibility is to ensure the adherence to law in the interpretation and application of and compliance with the EAC Treaty.

Arusha is the temporary seat of the Court until the Summit determines its permanent seat. The Court’s sub-registries are located in the respective National Courts in the Partner States.

Court Dismisses Tanzania’s Objection Blocking Village Councils in Ngorongoro not to sue the Government over Land Eviction Dispute

Posted in Press Release

East African Court of Justice Arusha, 26th January 2018:

The First Instance Division dismissed a preliminary objection raised by Attorney General of the United Republic of Tanzania challenging the Local Councils (LCs) of four (4) Village Councils in Ngorongoro Region in Arusha, blocking them to sue the Government over a land eviction dispute.

The Attorney General had argued that the Applicants (Village Councils) don’t have the requisite authority to institute the case at the East African Court of Justice against the Government. The Court in its ruling determined that the Village Councils have the Legal capacity to sue the government of Tanzania before this Court because it is a body corporate.

The Court in its ruling further said that Article 30(1) of the Treaty and Rule 17(3) & (5) of the Court gives locus stand before this court to a Village Council which is a body corporate in the terms of Article 26(2) of the Local Government of (District Authorities) Act, 1982.

The Court further ordered that the Application by the Ololosokwan Village Council and three (3) others, which was being challenged, be fixed for hearing. The Application is seeking Court to issue an interim order restraining and prohibiting the Government of Tanzania, from evicting the Applicants (Village Councils) from the disputed land and confiscating livestock grazing on the disputed land, until the main case filed before this Court is determined.

On 5^th August, 2017, the Government of Tanzania through the Ngorongoro District Commissioner wrote a letter to the Applicants giving them five days to vacate land bordering the Serengeti National Park, and that the eviction, removal of livestock and the burning of bomas took place on land that legally belongs to the Applicants.

The Applicants argue that the Respondent’s foresaid impugned actions contravened and violated the Constitution of the United Republic of Tanzania, Village Land Act 1999 and Wildlife Conservation Act, 2009 as well as the Treaty for the Establishment of the EAC, Articles 6(d) and 7(1) of the Treaty.

The Applicants are Ololosokwani Village Council, Oloirien Village Council, Kirtalo Village Council and Arashi Village Council.

Present in Court were some members and heads of the Village Councils to receive the Ruling of the Court with their Advocate Mr. Donald Deya and Mr.

 NOTES FOR EDITORS:

Article 30(1) of the Treaty provides that, “any person who is a resident in a Partner State may refer for determination by the Court, the legality of any Act, Regulation, Directive, Decision or action is unlawful or is an infringement of the provisions of this Treaty”

Article 26(2) of the Local Government of (District Authorities) Act, 1982 reads as follow; “Upon the issue of a certificate of incorporation in relation to a village council of the village in question shall, with effect from the date of that certificate, be a body corporate and shall. (…), (b) in its incorporate name, be capable of suing or being sued.

Rule 17(3) of the Court Rules, it states that “a corporate or company may either appear by its director, manager, or secretary, who is appointed by resolution under the seal of the corporation or the company, or may be represented by an advocate”

Rule 17 (5) of the Court provides that: The advocate for a party shall file with the Registrar a certificate that he or she is entitled to appear before a superior court of the Partner State”

-ENDS-

For more information, please contact:

Yufnalis Okubo
Registrar
East African Court of Justice
Arusha, Tanzania
Tel: +255 27 2162149
mail: Okubo [at] eachq.org
www.eacj.org

About the East African Court of Justice:

The East African Court of Justice (EACJ or ‘the Court’), is one of the organs of the East African Community established under Article 9 of the Treaty for the Establishment of the East African Community. Established in November 2001, the Court’s major responsibility is to ensure the adherence to law in the interpretation and application of and compliance with the EAC Treaty.

Arusha is the temporary seat of the Court until the Summit determines its permanent seat. The Court’s sub-registries are located in the respective National Courts in the Partner States.