A 150% tax will be imposed on the export of semi-finished leather from Ethiopia as of this month according to the Ministry of Finance and Economic Development. The move is expected to encourage the export of finished leather and leather products.
The new tax was announced by a joint statement of the MoFED and the Leather Industry Development Institute.
The Ethiopian leather has developed the capacity to export finished leather products as of last year said Solomon Getu President of the Ethiopian Leather Industries Association.The groundwork has been laid to halt the export of raw hides and skin as of December according to Ahmed Nuru representative the Minister of Trade speaking at a half day consultative forum discussing the national leather sector last month.
Leather factories in Ethiopia have developed the capabilities to export finished leather goods said Ahmed. The factories have enhanced their capacity to add value to leather to a higher standard he explained.
Export of raw hides and skins have deprived Ethiopia of significant benefits said Wondu Legesse Director General of the Ethiopian Leather Industry Development Institute.
The leather institute will provide the support leather factories require to enhance their capacity to produce quality leather products that can be competitive in the international market explained Wondu.
Source: Ethiopian News Agency
