Parliamentarians greenlighted a tax treaty agreement with Switzerland and Luxembourg, expanding the number of countries with bilateral tax treaties with Ethiopia to 20. Tax treaties entail the waving of taxes on passive and active incomes for citizens hailing from the signatory countries, while these uniquely grant the waiving of taxes for residents. State Minister for Finance Eyob Tekalegn attributed the trade importance of the two countries as the prime motive when it was presented before the Standing Committee of Plan, Budget & Finance. Switzerland was the number one destination for Ethiopian exports in the last fiscal year accounting for 32pc of the export volume. The Minister of Finance Ahmed Shide had indicated three weeks prior that increasing the tax-to-GDP ratio of the country is a national agenda as budgetary ceilings are circulated to most government institutions.
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