Ethiopia Forced to Withdraw Tax Hike that Resulted in Protests

Ethiopia Forced to Withdraw Tax Hike that Resulted in Protests

Ethiopian Revenue and Customs Authority says the decision to scrap the tax hike was hinged to the complaints they had received from affected persons

ADDIS ABABA (Africanews)―Ethiopian authorities have withdrawn a proposed tax hike for small businesses, the Addis Standard news portal has reported.

The withdrawal comes in the wake of protests by the affected business people. Shops were closed in the Oromia Regional State early last week in defiance of the new tax, by Friday, the action had spread to the capital Addis Ababa, with shops in bustling parts all closed.

The portal cited the head of the Ethiopian Revenue and Customs Authority (ERCA), Kebede Chane, as saying the decision to scrap the tax hike was hinged to the complaints they had received from affected persons.

He is also quoted by other local portals to have said that micro business owners including barbers / hair dressers, tailors, laborers, and street coffee vendors will be encouraged to pay “what they agree to pay.” The class of protesters are those

The tax in question targets businesses in category ‘C’ of the taxation bracket. Such outfits had an annual turnover of up to 100,000 Birr (about $4,300), it was aimed primarily at boosting government revenue. Business people said their opposition to it was because it was over-estimated and the authorities are demanding too much.

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Latest news, Ethiopia News, Kebede Chane, Ethiopian Revenue