A bill was prepared to reduce the 30 percent excise tax on new vehicles with 1300 cc (horsepower) to 5 percent.
The excise tax on alcohol and tobacco products is aimed at lowering, and even individuals whose social lives have been disrupted due to alcohol and tobacco were present in the council and strongly criticized the proposed amendment.
In order to increase the number of new vehicles imported into the country, an improved excise tax was introduced in Ethiopia about two years ago.
Excise tax was implemented on alcohol and tobacco products in order to reduce the number of users
However, due to the fact that the excise tax has not achieved the desired goal, the promulgation of an amended excise law is needed.
Today, the Ministry of Finance on the proposed bill to improve the excise tax plan for the public representatives. He explained to the Standing Committee on Budget and Financial Affairs as well as stakeholders.
The minister said that the main purpose of excise tax is to generate additional revenue for the government. At the same time, he pointed out that it is to reduce the consumption of products that are harmful to public health.
Minister of Finance, D’Eta Ayob Tekelani, who attended the council and gave an explanation, indicated that the implementation of Excise Tax Proclamation No. 1186/2012, which is currently in operation, is encouraging. However, he pointed out that some tariff rates have put pressure on the competitiveness of local industries. Therefore, they stressed the need to amend the decree.
It was mentioned in the council that used vehicles were banned from entering the country in 2012 due to the damage they cause to the environment and traffic.
In order to encourage new cars to be imported into the country, it was also pointed out that the excise duty paid per cc has been lowered.
For example, when new vehicles with 1300 horsepower are imported into the country, they will pay 30 percent excise tax, Dr. Eyob Tekaleli reminded.
He pointed out that this excise tax payment is exorbitant even compared to neighboring countries.
Therefore, the citizens heard about the preparation of the bill to reduce this 30 percent excise tax to 5 percent.
Products subject to overlapping excise duty have also been reformed. This includes products such as alcohol and tobacco that cause problems for the health and social life of the community.
For example, the 60 percent excise tax that was previously imposed on products called pure alcohol is expected to be reduced to 10 percent under the amended decree.
Stakeholders have also asked questions from the Standing Committee on the proposed excise tax reform. The excise tax reform, especially on alcohol and tobacco products, was strongly criticized in the discussion.
Even individuals whose social lives have been disrupted due to alcohol and tobacco attended the council and condemned the bill. “The law that will be amended not only for the present, but also for future generations, will cause scars,” he pointed out. On the contrary, he said, “The excise tax on the parties involved in tobacco and alcohol production has increased our pressure.”
The questions raised have been answered by the officials of the Ministry of Finance. High excise taxes imposed to reduce the spread of so-called unhealthy products; Wasihun Abate, a tax consultant at the Ministry of Finance, said that the consumption of the products has not decreased. In fact, he said, “it has led to an increase in products imported through smuggling.”
The Minister of Finance, Eyob Tekalani, added, “Focusing on the control of health-harmful products imported through smuggling will help the goal to be achieved through the excise tax.” To help with this, they mentioned that the Ministry of Finance is planning to develop technology to distinguish illegal products from legal ones.
of plan; Chairman of the Standing Committee on Budget and Finance, Desalen Wedaje, pointed out that before the draft law is approved, the matter should be thoroughly discussed and a forum will be created for frequent consultations.
Disappointed Marchet
