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Ethiopia Issues New Income Tax Law

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Ethiopia has prepared a draft law which will amend the existing income tax proclamation, Fana Broadcasting Corporate reported.

The reasons behind for the contemplation to amend the legal regime that has been in place since 2002, are the country’s existing reality as well as global volatility and the income of the society.

The draft document is said to have been prepared by a team drawn from the Ministry of Finance and Economic Cooperation (MoFEC), Ethiopian Revenues and Costumes Authority (ERCA) and state finance bureaus.

According to Fana broadcasting Corporate, the team is also preparing draft proclamation on amending tax administration.

Commenting on the development Wasihun Abate, Legal Service Director at MoFEC and Chairman of the team, said the draft proclamation would reduce income tax collected from employees.

The 2 draft bills are expected to be tabled for the federal legislature, House of Peoples’ Representative (HPR), by the end of the current fiscal year.