COVID-19 UPDATES: All the stories and commentaries on Coronavirus, in one place

Investments in Hospitality Get Profit Tax Lifted

Sileshi Girma

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.


Editors' Pick

Drop us a message

Or see contact page