The Ministry of Finance and Development (MoFED) is planning to revise some provisions of the Ethiopian Tax and VAT Proclamations. MoFED is submitting the two draft laws, as well as Mining Tax and Financial Reporting proclamations to the Cabinet.
MoFED listed the four proclamations, as the ones it hopes to draft and table, in a letter to the Cabinet two weeks ago. The provisions of the revisions have not yet been made clear. The ministry is seeking for consultants to carry out a study and come up with proposals for the three tax laws.
Some provisions of the Tax and VAT proclamations have been cause for disagreement in the past. The arrangement for tax dispute settlement has particularly been contentious, while there is also some debate in regards to 15% VAT payments. Some experts make suggestions for a reduced rate and an increased tax base.
The ministry is also seeking to make some amendments to the mining tax law that was passed in 1996.
The fourth draft proclamation is the financial reporting bill, which is presently under appraisal by specialists. It is a new law that the ministry of finance hopes to submit to the Cabinet. This proclamation aims at ensuring that companies conform to the international financial reporting and auditing standards adopted by two international professional organizations: the International Accounting Standards Board and International Public Sector Accounting Standards Board.
Source: Addis Fortune