Council of Ministers Refers Key Bills to HPR on Governance, Data, Power and Defense

Addis Ababa, September 28, 2026 (ENA) — Ethiopia’s Council of Ministers has approved a series of legislative and regulatory measures aimed at reshaping federal institutions, strengthening data governance, modernizing the power sector, improving tax administration and reinforcing the legal framework governing the national defense forces.

The Council first deliberated on a draft proclamation determining the powers and responsibilities of executive organs. Formulated pursuant to Article 56 of the FDRE Constitution following the 2026 national elections, the legislation establishes the institutional structure for federal executive entities to effectively execute their mandates during the upcoming term.

Following extensive discussions, the Council incorporated key inputs and unanimously referred the draft to the House of Peoples’ Representatives.

Addressing digital transformation priorities, the session evaluated the National Data Governance Draft Proclamation. Designed to secure data sovereignty, streamline government service delivery through system interoperability, expand artificial intelligence research, and drive data-led economic growth, the Council unanimously referred the enhanced bill to the parliamentary body.

On development financing, the Council approved a draft proclamation ratifying a 145.8 million SDR loan agreement signed with the International Development Association. Allocating funds toward Phase One of the Power Sector Reform, Investment, and Modernization Project, the Council verified the agreement’s full alignment with the national debt policy before referring it to the House of People’s Representatives for final enactment.

In tax governance, the Council passed amendments to the Federal Income Tax Regulation and the Federal Value Added Tax Regulation. The income tax revision aligns administrative procedures with Federal Income Tax Proclamation No. 979/2016 to enhance operational transparency. The value added tax adjustment addresses tax structures for former turnover tax collectors while exempting essential consumer items to safeguard household purchasing power and boost local industrial competitiveness.

Following an extensive discussion on the draft regulations, the Council unanimously decided to implement it right after its publication in the Negarit Newspaper.

Finally, the Council reviewed proposed amendments to Defense Forces Proclamation No. 1286/2023. Intended to strengthen the legal framework enabling the national armed forces to execute their constitutional mandates outlined under Article 87, the Council unanimously resolved to send the draft bill to the House of Peoples’ Representatives.