Connect with us

Africa

Ethiopia to generate revenue by introducing excise tax on more goods

Published on

Ethiopia to generate revenue by introducing excise tax on more goods

The government of Ethiopia is set to introduce excise tax on more goods in a bid to collect additional revenue of over 1 billion dollars annually.

The country has been imposing excise tax on selected goods, such as luxury goods and basic goods which are demand inelastic. The new excise tax will be implemented on a number of other goods even though their complete list has not been announced yet.

“Imposing excise tax on other goods will be implemented shortly and the government is set to collect more than 1 billion dollars annually, the country’s State Minister of Finance Eyob Tekalign disclosed on Thursday, 9 May 2019, in a briefing.

Ethiopia has also been imposing excise tax on goods that are believed to have been hazardous to health and cause social problems in an attempt to reduce consumption of such goods.

The excise taxes will help the country generate better revenue and will greatly contribute to the economy. Tekalign also said that the additional taxes will be used towards enhancing the development of various sectors, including education, health and agriculture.

Meanwhile, the ministry is also going to introduce a single treasury account to modernize the finance system which will enable the government to utilize collected taxes in a proper manner.

The pilot program on the single treasury account will be implemented at seven government institutions this Ethiopian fiscal year, Tekalign added.

– APA

Loading...