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.
Excise Tax Proclamation No 307/2002 or 307/1994 EC | DOWNLOAD |
Excise Tax Amendment Proclamation 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)
- when imported
- when produced locally at the rate prescribed in the schedule.
Base of Computation of Excise Tax
- In respect of goods, produced locally, the cost of production;
- 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/
- In respect of goods produced locally, by the producer;
- 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:
- When imported at the time of clearing the goods from customs area;
- 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
S.N. | Type of Product | Excise 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
|