House Legislates Excise Tax Law

Feb 15 , 2020

Lawmakers finally legislated the controversial excise tax law on February 13, 2020, with two opposing and seven votes abstaining. The new law, which aims at doubling the current excise tax contribution to GDP to 1.4pc, was legislated during an urgent parliament session that was attended by 320 MPs and was held after the members went for recess. The bill, which proposed a five percent minimum and a 500pc maximum excise tax, has been in the making for the past year by the Ministry of Finance. During the legislation, a number of changes were made from the first draft. The law imposed 30pc plus eight Birr a pack excise tax on cigarettes, an increase from 30pc plus six Birr. Imported cars that are between one and two years old are subjected to an excise tax of 55pc, whereas cars between two to four years old are subjected to 105pc excise. Cars that have served more than four years but not greater than seven years are subjected to a 205pc rate. Second-hand cars with over seven years are subjected to taxation of 405pc. The law also increased tax on beers with alcoholic content of up to seven percent to 40pc or 11 Br per litre, whichever is higher.


E-Consultation Portal Launched to Boost Stakeholder Engagement

An e-consultation manual and portal designed to enhance stakeholder engagement in the drafting of laws before their final ratification stage was launched last week. Developed by the Business Environment & Investment Climate (BEIC) project team, the platform operates under the oversight of the Justice and Technology ministries. It aims to improve transparency, efficiency, awareness, and effectiveness throughout the law formulation and enactment process. According to Belayhun Yirga, stat...


Trade Ministry Changes Guard

Prime Minister Abiy Ahmed (PhD) made a series of appointments last week, assigning Kassahun Goffe (PhD) as the new Minister of Trade & Regional Integration. Kassahun, who previously served as the State Minister, succeeds Gebremeskel Chala, who navigated the country through various trade reforms. The appointment comes amidst an export slump, as Ethiopia has faced major economic and political headwinds over the past few years. The Ministry reported a shortfall of 863 million dollars from it...


Ahadu Bank Savours First Taste of Profits

Ahadu Bank registered a 175 million Br gross profits in the ended year, turning around its financial performance. The two-year-old Bank established with 503 million Br in paid-up capital mobilised from 9,600 shareholders has also managed to double the figure to 1.03 billion Br. Ahadu's total assets have also nearly doubled to 6.3 billion Br, while its operating income soared to 1.15 billion Br from financial services for nearly 700,000 customers. It also expanded its branch reach across the c...