The Ethiopian Customs Commission (ECC) has implemented revised import taxes to bolster domestic businesses and decrease reliance on imported products. Imported electric vehicles (EVs) now face higher charges with the initiation of 5pc in customs duty. Commissioner Debele Kabeta spearheaded the policy shift last week, ostensibly in line with the country's ongoing import substitution policy, which prioritizes local manufacturing. Kassaye Ayele, the tariff administration director at the Commission, emphasised that the changes were made after careful consideration of their social and economic impacts on local manufacturers. "More revisions will follow," he said. He stated that the changes come with the need to discourage fully assembled imports and entice more manufacturers towards EV assembly and production. Minister Alemu Sime, of the Ministry of Transport, announced the policy shift to Parliament back in February this year, citing rising fuel costs as the reason for reevaluating the country's dependence on conventional vehicles and exploring alternative options. His administration seeks to curb carbon emissions, promote cleaner air, and encourage the adoption of greener technologies in the automotive sector by discouraging the import of fossil fuel-powered vehicles. There are 250 registered electric vehicle importers in the country. Imports of EVs have nearly doubled in the past three years, with an outlay last year of 72 million dollars.
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