Addis Ababa December 31/2019A panel discussed today the new revised draft excise tax law in the presence of stakeholders .
The panel was organized to create awareness and collect inputs on the draft excise tax law referred by parliament to the Budget and Financing Standing Committee on December 17, 2019 for further scrutiny.
Revenues Minister Adanech Abeebee said the panel was organized to create clarity on the new law.
She noted that the government has been undertaking successful reform to improve and modernize the tax collection system, and revising the excise tax law would increase tax revenue and help achieve economic and social goals.
Ethiopia collects below 0.7 percent of excise tax to GDP, which is well below 1.4 percent of GDP of Sub-Saharan countries, Adanech pointed out.
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, causing social problems as well as on basic goods which are demand inelastic, the draft states.
Concerned experts and officials, business community representatives, media personnel and other stakeholders attended the panel organized by ministries of Revenues and Finance.