Revenues Minister Announces Tax Cancellation, Deduction Details

Addis ababa, May 6/2012( ENA) Ministry of Revenues has announced today details of the recent tax cancellation and deduction decision passed by the Council of Ministers.

The decision is passed with the view to ensuring quick economic recovery from the adverse effects of COVID-19 pandemic, it was noted.

Accordingly, taxes owed between 2005 and 2014 fiscal years and interests as well as penalties are totally scrapped; while those from 2015 and 2018 are deducted and interests as well as penalties canceled.

Revenues Minister Laqe Ayalew called on tax payers to apply and benefit from the decision within the coming 30 days.  

This unprecedented move in Ethiopian tax history will save tens of thousands of businesses from total collapse, the minister pointed out.  

“The measure taken to buttresses taxpayers affected by COVID-19 would alleviate catastrophic economic and social shocks the country and businesses face,” he added.

Laqe believes that there could be decline in revenue this Ethiopian fiscal year due to the effect of the pandemic.

Out of the over 270 billion the ministry plans to collect in 2019/20 fiscal year,  it has so far collected 192 billion Birr.