Ethiopia’s Council of Ministers has advanced a series of legislative and regulatory decisions covering data governance, energy-sector financing, income tax administration and value added tax, with several draft laws approved for submission to the House of Peoples’ Representatives.
The decisions were taken during the Council’s 59th regular meeting held on September 28, with the measures focusing on strengthening Ethiopia’s digital economy, improving the investment environment and modernizing key areas of economic regulation.
Among the major legislative items considered was the draft National Data Management Proclamation, which is intended to strengthen data security, sovereignty, interoperability and data sharing across institutions.
The proposed law seeks to establish a more coordinated framework for the management and reuse of data while supporting the modernization of public services, artificial intelligence research and innovation, and the broader development of Ethiopia’s digital economy.
Following deliberation, the Council approved the draft proclamation for submission to the House of Peoples’ Representatives.
The Council also approved a draft proclamation for the ratification of a financing agreement with the International Development Association (IDA) involving 145.8 million Special Drawing Rights (SDR).
The financing will support the first phase of the Energy Sector Reform, Investment and Modernization Project, which is intended to facilitate investment and modernization across Ethiopia’s energy sector.
After reviewing the agreement and its consistency with the country’s borrowing policy, the Council decided to submit the draft proclamation to parliament.
Tax administration also featured prominently in the Council’s decisions. The Council approved amendments to the Federal Income Tax Regulation, aimed at improving transparency and administrative efficiency and aligning the regulation with Ethiopia’s amended federal income-tax framework.
The amended regulation will enter into force upon publication in the Federal Negarit Gazette. The Council also endorsed amendments to the Federal Value Added Tax Regulation.
The changes will allow businesses and professionals previously subject to turnover tax to register for VAT following the abolition of turnover tax and collect VAT where applicable.
The amendment also provides for exemptions on selected supplies where VAT has placed pressure on the cost of essential goods and services or affected the competitiveness of domestic industries.
The revised VAT regulation will similarly take effect upon publication in the Federal Negarit Gazette.
The latest legislative decisions highlight the government’s continued focus on updating Ethiopia’s economic regulatory framework, particularly in the areas of digital transformation, energy investment, tax administration and domestic business competitiveness.
Source: Fana BC
