HPR Studying Draft Privatization, Investment and Excise Tax Bills

Addis  Ababa  December 17/2019 The House of People's Representatives (HPR) referred today a draft law for the privatization of public enterprises and two other bills to the pertinent standing committees for further scrutiny.

The draft bills referred to the committees with majority votes are the Proclamation to Provide for the Privatization of Public Enterprises, Investment Proclamation, and Excise Tax Proclamation.

The draft public enterprises proclamation for privatization of public enterprises has in effect remained unaltered for over 20 years, it was learned.

According to the preamble of the draft proclamation, revising the proclamation has become necessary to broaden the role and participation of the private sector in the economy and increase the capacity and finance of public enterprises for better development and competitiveness.

"It has (also) become necessary to improve the efficiency of public enterprises, enhance their competitiveness, improve their access to capital and improve the quality accessibility of their services," the draft bill reads.

Similarly, it has become necessary to revise the investment bill to accelerate the economic development of the country, ensure its sustainability, and strengthen domestic production capacity.

Some members of the House appreciated the timeliness and significance of the draft proclamation, but raised concerns about pollution and land related issues.

The revision of the Excise Tax Proclamation has become necessary to collect and impose tax on goods and services that are believed to be luxury, hazardous to health, cause social problems as well as on basic goods which are demand inelastic, it was pointed out.