ADDIS ABABA – The excise tax proclamation that is being amended by Ministry of Finance is said to boost nation’s macro economy in many ways, said Ministry of Finance.
It is expected that the amendment could play a huge role in enhancing investment as well as ease tax collection system.
According to Mulay Weldu, Director of Tax Policy at the Ministry, the amendment was needed to cope up the excise tax taxation system with the nation’s current economic status since the tax proclamation has not been reviewed for the past nearly two decades.
He noted that as the amendment omits double taxation which was a bottleneck for both sides-tax payers and collectors-it would play a role in ease of doing business and promoting investment.
In addition, it would be principal to curb the good governance challenges that may arise from the irregular taxation system.
As to him, the revision shall promote the expansion of automotive industries, creates more job opportunities, facilitates technology transfer and discourages the importation of used cars that could challenge nation’s green economic policy, as to him.
While raising government revenue is the top objective of the amendment, improving the living standard of its citizens and empowering women is the utmost priority, said the Director.
He said: “The draft proclamation has taken the current living way of people into account. As many people live in residential units and it is challenging to perform some house chores easily, the eighty and thirty percent excise tax that used to be imposed on washing machines (clothes and dishes) was totally removed respectively.
He further explained that the tax imposed on video camera that is used in the film industry was decreased from 30 to 10 percent while the 30 percent tax imposition on children toys was removed.
Excise tax (sin tax) which is said to be the easiest tax to collect is imposing higher prices to discourage consumption on selected items that may be harmful to human beings, it was learnt.
The Ethiopian Herald February 5/2020
BY BETELHEM BEDLU
