Ethiopia's Ministry of Finance is tightening its grip on tax collection with a new directive requiring excise stamps on specific goods. This move targets producers and importers of spirits, tobacco, bottled water, beers, cigarettes, and cigarillos, with the potential to expand to other products.

Citing legal authority from the 2020 Excise Tax Proclamation, the directive aims to curb tax evasion and broaden the tax base. The stamps, which could be physical or digital, will be applied under a system linked to the tax office. Manufacturers and importers must apply for stamps 60 days in advance and facilitate system installation for authentication and tracking.

Experts believe this is a response to concerns about non-compliance. The directive also mandates special markings for duty-free or export goods. Penalties for violating the rules include imprisonment and hefty fines.

Source: Capital Ethiopia