Fed, Regional States Recieve Pass to Legislate Property Taxes

Jan 11 , 2023

The right to impose taxes on property ownership is granted to regional states after a joint session of Ethiopia's legislative houses passed a resolution today.

Members of the two houses have voted to give the mandate to regional states, dividing it with the federal government. The House of Federation has put forward the motion to provide the mandate at the city level or limit it between the federal and regional states, with the final vote passed gaining more than two-thirds.

Speaker of the House, Agegnehu Teshager, reiterated the constitutional provision allowing the legislative houses to come up with a resolution when such undefined issues arise.

However, Parliamentarians questioned the affordability, equity, and relevance of imposing property tax during galloping inflation. Leaders of the standing committees that tabled the resolution defended its relevance and timing in promoting and supporting growing "urbanisation."

The State Minister for Finance, Eyob Tekalign (PhD), praised today's resolution as a “significant move” that gives the Ministry clarity to prepare a bill.

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