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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.

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.

Excise Tax Rate for Different Product Types

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