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Ethiopian Customs to Lift Double Taxation on Salt

The customs and revenues authority in Ethiopia, ERCA, has decided to lift the double excise tax imposed on salt production in Ethiopia.

Ethiopian Excise Tax proclamation No. 307/2002 established a 30% excise tax on imported and locally produced iodized and non-iodized salt. Consequently iodized salt, which uses non-iodized salt, already taxed under the proclamation, as input has been subjected to double excise taxation.

ERCA committed to investigating the issue and enacting corrective measures as necessary at the first Federal Public-Private Consultative Forum.

The tax authority decided to lift the system that imposed double taxation after reviewing the matter as promised according to Teshome Beyene, Secretary General of the PPCF secretariat.

ERCA is in the process of drafting the amendment that will put the change into effect said Teshome.

In related news it was announced that the secretariat is finalizing preparations to conduct two forums over the next month.

The first forum will be a sectorial forum dealing with trade and logistic issues such as problems with customs procedures and possibly including customs authorities will be held next month said Teshome.

The second Federal Public-Private Consultative Forum is also scheduled for the end of February according to the secretariat.

It is expected that the federal forum will discuss the Trade Registration and Licensing Proclamation and problems associated with its implementation.

It is to be remembered that the first federal PPFC was held last February as per a Memorandum of Understanding signed by Girma Birru former Trade and Industry Minister and Eyesuswork Zafu then President of the Ethiopian Chamber of Commerce and Sectoral Associations.  

The second forum planned for six months after the first was delayed with the establishment of the secretariat and the procedure involved with selecting an agenda said Teshome.

Source: The Reporter