The new Excise Tax Amendment Proclamation No. 1287/2023 became effective as of April 27, 2023 in Ethiopia. The Proclamation abates the excise tax rate for imported new vehicles, stating the earlier rates were “exaggerated.” It also introduces a 5% excise duty on telecommunication services, including internet, voice, and SMS services. As per the Proclamation, this...Read More

Authorities are collecting a 3% social welfare levy on imported goods.   It was back in August 2022 that a new social welfare levy was introduced by the government through the Social Welfare Levy on Imported Goods Regulation No. 519/2022. With a 3% rate, the social welfare levy applies to all goods imported into Ethiopia...Read More

Can a taxpayer present evidence to the tax authority after an Audit has started? Ethiopian tax statutes have not addressed the admissibility of evidence presented to the tax authority (the Ministry of Revenue) once an audit has started. The repealed Financial Bookkeeping Directive No. 152/2019 and the new Directive No. 176/2022 don’t sufficiently cover the...Read More