Excise tax in Ethiopia is imposed and payable on selected goods, such as, luxury goods and basic goods which are demand inelastic. Moreover, it is believed that imposing the tax on goods that are hazardous to health and which are cause to social problem, will reduce the consumption of such goods. We have included in this page the rate of excise in Ethiopia, base of computation of excise tax in Ethiopia and payment of and time of payment of excise tax in Ethiopia.

The section on Excise tax is adapted from the Ethiopian Revenues and Customs Authority website: www.erca.gov.et and Excise Tax Proclamationits amendment; however, it’s advisable that a reader gets the documents for a comprehensive understanding of the existing proclamation and regulation.
 
  1.  Excise Tax Proclamation No 307/2002 or 307/1994 EC (Download) and the amendment 610/2008 (Download)

Rate of Excise Tax

The excise tax shall be paid on goods mentioned under the schedule of the proclamation (and also found below)

  1. when imported
  2. when produced locally at the rate prescribed in the schedule.

Base of computation of excise Tax:

  1. In respect of goods, produced locally, the cost of production;
  2. In respect of goods imported, cost, insurance and freight (CIF value)

Payment of Excise Tax

The excise tax shall be paid within the time prescribed according proc307 Sub-Article/2/

  1. In respect of goods produced locally, by the producer;
  2. In respect of goods imported, by the importer

Time of Payment

According to the excise tax proclamation, excise tax on goods shall be paid under the schedule

  1. When imported at the time of clearing the goods from customs area;
  2. When produce locally, not late than 30 days from the date of production.

The amendment includes some replacements of words and phrases and new added sub-article (4) under Article 27 of the Proclamation

S.N.Type of ProductExcise Tax Rate (%)
1
Any type of sugar/In solid form excluding Molasses
33
2
Drinks  
  All types of soft drinks/except Fruit/ Juices
40
  Powder soft drinks
40
  Water bottled or canned in a factor
30
  Alcoholic drinks  
  All types of beer & stout
50
  All types of wine
50
  Whisky
50
  Others alcoholic drinks
100
3
All types of pure Alcohol
75
4
Tobacco & Tobacco products  
  Tobacco leaf
20
  Cigarettes, Cigar, Cigarillos, pipeTobacco snuffs and other tobacco products
75
5
Salt
30
6
Fuel-Super Benzene, Regular Benzene, Petrol, Gas-online and other motor spirits
30
7
Perfumes and toilet waters
100
8
Textile and Textile products  
  Textile fabrics, knitted or woven of natural silk, Rayon, nylon wool or other similar material
10
  Textile of any type partly or wholly made from cotton which is gray, white, dyed or printed, in pieces of any length or width /except mosquito net and "Abudgedid"/ and including blankets, bed sheets, counterpanes, towels, table clothes and similar articles
10
  Garments
10
9
Disk washing machines of a kind for domestic use
80
10
Washing machines of a kind for domestic purpose
30
11
Video decks
40
12
Television and video cameras
40
13
Television broadcast receivers whether or not combined with gramophone, radio, or sound receivers and reproducers
10
14
Motor passenger cars, station wagons, utility cars, and land rovers, tips pickups, similar vehicles/including motorized caravans/ whether assembled, tighter watt gaur appropriate initial equipment.  
  Up to 1,300 C.C
30
  From 1,301 C.C up to 1800 C.C
60
  Above 1,800 C.C
100
15
Carpets
30
16
Asbestos and Asbestos products
20
17
Clocks and watches
20
18
Dolls and toys
20

Exchange Rates

Selling
Buying
USD 28.5003  27.9415 
EUR 32.4505  31.8142 
GBP 35.9417  35.2370 
CAD 21.2673  20.8503 
AED 7.7583  7.6062