The Ethiopian Parliament (the House of People’s Representatives) is working on draft laws for the privatization of public enterprises, investment proclamation, and excise tax proclamation. The House has referred the draft laws to the relevant standing committees for further study.

The proclamation for the privatization of public enterprises, that is currently being drafted, has in effect remained unaltered for over 20 years, it was learned. According to the preamble of the draft proclamation, revising the proclamation has become necessary to broaden the role and participation of the private sector in the economy and increase the capacity and finance of public enterprises for better development and competitiveness.

The draft bill reads: “It has (also) become necessary to improve the efficiency of public enterprises, enhance their competitiveness, improve their access to capital and improve the quality accessibility of their services.” 

In the same light, the parliament found "necessary" to revise the investment bill with the aim of accelerating the economic development of Ethiopia, ensure the bill's sustainability, and strengthen domestic production capacity. Some members of the parliament spoke in appreciation of the timeliness and significance of the draft proclamation, albeit raising concerns about pollution and land-related issues.

The excise tax proclamation is also under review with the goal of exploring imposing additional tax on goods and services that are deemed luxurious, hazardous to health, causes social problems as well as on basic goods the demands of which are inelastic.

Source: ENA