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Vehicle Importers Request Excise Tax Exemption

September 4 , 2021

Importers are calling on the federal government to exempt 637 vehicles held up at customs in Djibouti and Addis Abeba from the excise tax levied on used cars. During a press briefing last week, the Ethiopian Vehicles Importers Association, which has over 1,500 members, stated the vehicles are being held up unfairly as the importers had previously been allowed to bring them in free of tax during the six-month grace period before the excise tax proclamation became effective in August last year. The Association says the COVID-19 pandemic prevented the 85 importers involved from getting the vehicles in on time, and is requesting they be exempted from the excise tax. The Ministry of Finance has recently introduced a new definition of how new cars are classified, stating all motor vehicles imported within three years of their manufacture date are to be considered new.


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