Radar | Sep 10,2023
May 25 , 2019
By FASIKA TADESSE ( FORTUNE STAFF WRITER )
While removing the 30pc depreciation applied to customs duties on imported second-hand items, the government will retain the 10pc annual depreciation on imported items with duty-free privileges.
A directive issued by the Ministry of Revenues on May 15, 2019, has fully lifted the uniform 30pc depreciation applied across imported used items, regardless of their age. However, the directive, signed by Adanech Abebe, minister of Revenues, left the depreciation on used items with duty-free privileges unchanged.
The 10pc annual depreciation applied to imported items with duty-free privileges will remain in place, according to Addis Ayele, price valuation director at the Ministry of Revenues, which collected 163.3 billion Br in revenues in the first 10 months of the current fiscal year.
While levying customs duties on imported used items, customs officials of the Ministry have been deducting 30pc depreciation on the value of the items, according to the former directive. They were also applying 10pc annual depreciation on used items imported by expat employees of non-governmental organisations and embassies and by those that are entitled to duty-free rights. The depreciation is applied when they transfer the properties to third parties.
The new procedure outlined by the directive has already caused a price escalation in the second-hand vehicles market around the capital.
Since last Thursday, the price of used imported vehicles has drastically increased with a minimum rise of 80,000 Br depending on the model and brand, according to the car dealers Fortune spoke to. Most of the car dealers have been hoarding their vehicles with the anticipation that prices would go higher.
Retailers have already increased their prices despite the fact that customs officials at the Ministry have not yet started applying the new procedure as they wait for clarification and explanations from the head office, according to Alemayehu Anticho, manager of Qality Customs Branch Office of the Ministry.
Currently, the officers are only clearing duties of pending imported items that arrived before the issuance of the new directive. But they are no longer issuing customs declarations on the vehicles.
"The final declaration of the pending items will be issued after we get clarification from the Ministry," said Alemayehu.
The officers have stopped processing used imported items that have already arrived at dry ports and the Port of Djibouti after the issuance of the directive until they receive clarification.
In the last fiscal year, the county has imported both used and brand new cars valued at 544.35 million dollars. At a national level, there are around 977,000 registered vehicles, according to data from the Ministry of Transport.
Since the new directive was issued, the price of automobiles has significantly increased in the market by a minimum of approximately 80,000 Br.
PUBLISHED ON May 25,2019 [ VOL 20 , NO 995]
Radar | Sep 10,2023
Viewpoints | Aug 17,2019
Fortune News | Apr 26,2019
Viewpoints | Jul 10,2020
Exclusive Interviews | Aug 19,2023
Featured | Aug 24,2019
Fortune News | Nov 11,2023
Fortune News | Oct 15,2022
Fortune News | Sept 18,2021
Dec 24 , 2022
Biniam Mikru heads the department of cabinet affairs under Mayor Adanech Abiebie. But...
Jul 2 , 2022 . By RUTH TAYE
On a rainy afternoon last week, a coffee processing facility in the capital's Akaki-Qality District was abuzz with activ...
Nov 27 , 2021
Against my will, I have witnessed the most terrible defeat of reason and the most sa...
Nov 13 , 2021
Plans and reality do not always gel. They rarely do in a fast-moving world. Every act...
Leaders of the National Election Board are in a charm offensive mood, of a sort. Last week, they organised a rare tour for members of the me...
When the country's most senior diplomats and envoys return back to their posts after two-week debriefings, they leave behind a point or two...
Dec 9 , 2023
Making a paradigm shift seems elusive for those in the driving seat of Ethiopia's mon...
Dec 2 , 2023
The symphony of traffic noise in Addis Abeba is not just a sign of life, but a siren...
Nov 25 , 2023
Ethiopia's quest to develop a functioning capital market is a demanding yet not unach...
Nov 18 , 2023
Prime Minister Abiy Ahmed (PhD) has made a fervent call for landlocked Ethiopia to ga...
I have a love-hate relationship with my phone. It is my go to source for information. I enjoy interacting with text messages and browsing t...
While doing laundry over the weekend, I began video chatting with a friend from overseas. Amid our lively conversation, I told him to give m...
Or see contact page