The Ministry of Finance slashed the proposed excise tax on brand new vehicles with engine capacities below 1,300cc from 35pc to five percent.
The Ministry of Finance slashed the proposed excise tax on brand new vehicles with engine capacities below 1,300cc from 35pc to five percent. The new revision also reduced the 15pc excise tax on bottled water to 10pc. Complaints from water bottlers stating that they are collecting plastic water bottles to avoid contaminating the environment were the reason the tax was reduced, according to Eyob Tekalign (PhD), state minister for Finance, who gave a press briefing on Friday, January 17, 2019. The initial bill also proposed a 30pc excise tax in general and five Birr on each packet of cigarettes. The Ministry revised this to six Birr a pack, keeping the 30pc as it is. The change was made due to a push by the health sector, according to Eyob. Excise taxes on alcohol remains the same, considering the jobs created by the industry, according to Eyob. The changes were made after the Ministry held consecutive meetings with industry operators and parliament held public hearings. Drafted by the Ministry of Finance, the bill was tabled to the parliament and is expected to be legislated soon.
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