Proclamation No. _____/2019
EXCISE TAX PROCLAMATION
WHEREAS, it has become necessary to review the type of goods on which excise
tax has been collected and impose the tax on goods and services that are believed to
be luxury, hazardous to health, causes social problems as well as on basic goods
which are demand inelastic;
WHEREAS, it is believed that replacement of the current excise tax which was
assessed on production cost by ex-factory price will alleviate the problem
encountered by taxpayers due to lack of predictability on the amount of tax they are
liable to pay;
WHEREAS, to overcome the problems encountered in collecting proper excise tax
due to shortcomings in the current excise tax proclamation, it has become necessary
to introduce a new law that puts in place a system which alleviates problems so far
NOW, THEREFORE, in accordance with Article 55(1) and (11) of the
Proclamation it is hereby proclaimed as follows.
ETHIOPIAN TAX and CUSTOMS LAWS
Ethiopian tax and customs laws is characterized by frequent repeal and amendments. The number of proclamations, regulations and directives makes it to some extent difficult to understand this area of law. In order to make it easy for researchers, business persons and others interested in knowing Ethiopian tax and customs laws I have prepared this compilation. It contains a subject index and a guide to repealed laws. Fortunately, I was able to obtain some statutes enacted before 1995.
Currently, the administration and enforcement of tax and customs laws is centralized under a single agency i.e. Ethiopian Revenue and Customs Authority. The establishment act of the Authority has been amended 4 times and lastly the recent proclamation establishing the Authority, Proc 587 Ethiopia Revenues and Customs Authority has repealed all previous legislations.
Compared to other administrative agencies in Ethiopia, the Ethiopian Revenue and Customs Authority has a unique (or may be odd) features. This unique feature could be best understood from the constitutional principle of separation of powers perspective. According to article 6 of the establishment proclamation, the Authority is responsible to establish and implement modern revenue assessment and collection system. It is also empowered to examine goods and means of transport entering into or departing from Ethiopia through customs ports, frontier posts and other customs stations, and ensure that customs formalities are complied with. In addition to such administrative powers it is also given prosecution and investigative powers over tax and customs offenses. The proclamations also instructs the Federal police to organize and deploy police force to prevent criminal offences committed in violation of customs and tax laws. Federal courts are also instructed organize customs and tax divisions that enable efficient enforcement of customs and tax laws. Irrespective of the civil servants proclamation no 515 that regulates employment conditions of civil servants; employees, prosecutors and investigators of the authority are governed by a separate regulation of the Council of Ministers ans Directive of the Authority. Irrespective of the legal analysis, the real implications of the cumulative powers of the authority in light of the constitutional principle of separation of powers, requires practical research.
Below you will find Ethiopian tax and custom laws arranged in topics and sub-topics. I have made a lot of efforts to make this a complete guide. Please do leave me a message if there is any law not included here.
ETHIOPIAN TAX and CUSTOMS LAWS
(SOURCE: Foreign Tax Law, Inc. Website: http://www.foreignlaw.com)
Proc No. 612-2008 Stamp Duty (Amendment)
SALES and EXCISE TAX
TAX ON EXPORT GOODS AND MINING OPERATIONS
VALUE ADDED TAX
TAX ADMINISTRATION , AGENCY STRUCTURE, POWERS, FUNCTIONS and DUTIES