May 18 , 2024
Ethiopia aims to revitalise its export sector with a revised export incentive policy. A bill that proposes a 40pc reduced penalty on unused duty-free raw materials made it to the Standing Committee on Budget & Finance last week. It amends the 2012 Export Trade Duty Incentive Schemes while exporters gain more flexibility to ship products manufactured using duty-free materials. It also allows exporters to re-export defective duty-free materials to the source country without penalty. Tesfaye Beljige, Government Chief Whip, argues this will expedite the work of exporters and boost foreign currency earnings. However, Parliamentarians have raised concerns about its alignment with international trade agreements and the potential loss of tax revenues. They pointed out the 70 billion Br loss from the duty-free imported items, requesting further discussion.
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