Investments in Hospitality Get Profit Tax Lifted

Sileshi Girma


Investments in Hospitality Get Profit Tax Lifted

The government has introduced a five-year zero profit tax policy for new investments in the hospitality sector. The decision, which was made in the hope of encouraging private sector investment in the tourism industry, selected seven eligible sites in Tigray, Amhara, Afar, Oromia and Southern Nations, Nationalities & People's (SNNP) regional states. Gheralta Mountains in Tigray, Simien Mountains National Park in Amhara, Abiata Shalla National Park in Oromia, and Nech Sar National Park in Southern regional states are among the areas included under the new policy. The profit tax incentives will be similar to tax and duty exemptions for the import of construction inputs, capital goods and vehicles, according to Sileshi Girma, director-general of Tourism Ethiopia. Developing world-class tourism facilities in the industry is expected to enable the creation of millions of jobs and boost revenue for the country, according to him. The new policy comes on the heels of the Dine for the Nation fundraising campaign organised by Prime Minister Abiy Ahmed (PhD) to develop three tourist sites in the country: Gorgora in Amhara, Wonchi in Oromia, and Koysha in SNNP regional states. So far, the campaign has garnered 1.4 billion Br of its three-billion-Birr goal.

[ssba-buttons]

Radar

New Directive Hikes Service Fees for Foreign Investors in Free Trade Zones

The Ethiopian Investment Board has issued a new directive revising the service fees from foreign investors payable in dollars to the Ethiopian Investment Commission (EIC), introducing updated rates for both the One Stop Shop and designated Free Trade Zones. The revised directive came into effect this April following its publication on the websites of the Ministry of Justice and the EIC. Issued pursuant to Article 23 of the Special Economic Zone Proclamation, the directive outlines charges for...


Radar

City Tables 350B Br Budget Plan for Upcoming Fiscal Year

The City Administration has approved a resolution to submit a proposed budget of 350 billion Br for the 2025/26 fiscal year to the City Council for deliberation. According to the Administration's statement on its official social media page, the draft budget is designed with a central focus on poverty reduction, encompassing targeted subsidies for sustainable development, investment in large-scale job-creating projects, and enhanced service delivery to address the growing demands of the reside...


Radar

Ethiopia, UN Launch Joint Plan to Drive Development Through 2030

The Ethiopian government and the United Nations (UN) have signed a five-year development plan outlining national priorities from 2025 to 2030. Signed on June 20 at the Ministry of Finance, the United Nations Sustainable Development Cooperation Framework (UNSDCF) with implications that it aligns with Ethiopia's reform goals and the Sustainable Development Agenda. The plan is backed by a projected 6.5 billion dollars, though only 1.5 billion dollars is currently secured. It focuses on closing t...