ADDIS ABABA– Ministry of Trade and Industry announced that Ethiopia has lifted-up the tax imposed on export of pickled and white blue leather products since January 06/2020 to rescue the sector.
Briefing the media Yesterday State Minister Teka Gebreyesus stated that the implementation of tax on export of semi-finished leather products has seriously affected the sector.
Meanwhile Teka noted that since the tax imposed on the sector was high and identified as the main factor for the sector’s failure, government decides to lift the tax on exporting of pickled, white blue and crest products in accordance with 61/2012 proclamation implemented since Monday January 06/2020.
The tax free export of semi-finished leather products hoped to boost and stimulate export of the sector, he stated.
Ethiopian Raw Hides and Skin Suppliers’ Association President Berhanu Abate on his part noted that although Ethiopian hides and skin are most preferred , taxation appeared to be potential hazard for the sectors performance.
According to him, 80 per cent of hide and skin traders withdrewthe leather industry following the enforcement of the tax. Of the 17 leather processors five were closed and the remaining 11 factories have been producing blow their capacity.
over the past seven years, Ethiopia attracted zero foreign direct investment (FDI) in the sector although it has untapped potential, Berhanu stated adding that the current government’s decision of lifting the tax is supposed to address challenges.
To boost the productivity and export of the sector, Ethiopia is working to establish Leather City Park at Modjo which is at ignition period, it was learnt.
The Ethiopian Herald January 9/2020
