ADDIS ABABA UNIVERSITY

College of Law and Governance

Law school

Tax Law Individual ASSIGNMENT

Title: Lists of undesignated tax under 1995 FDRE constitution

NAME ID. Number

Tewedros Kassa.............UGR/9148713

Submitted to: Instructor Addissie

Submission date: April, 2024

Lists of undesignated tax under FDRE constitution:

Undisgnated tax is a tax base that has not specified in any of the existing tax jurisdictions and no layer of
government can claim its taxing powers extend to such tax base,1 Under FDRE constitution. And the
following below are lists of this tax:

1) Property tax it is a tax paid on real property owned.2 And it is one among Undesignated tax under the
1995 FDRE constitution because it is not specified in any existing tax jurisdiction, as per the definition of
undesignated tax above. Rather the constitution only speak about tax on income derived from this
property, for federal government Article 96(6), and for States article 97(6).

2) Taxes on income of houses and properties owned by the state Governments Means revenue due for
government out of incomes of house and properties. also the constitution says noting on this tax base,
rather it says states shall collect rent not tax on houses and other properties they own, (article 96(6)).

3) Tax on private enterprise in the federally administered territory means tax revenue from private
enterprise which is business type or the like is also not given to any level of government, so it is
undesignated tax. the constitution only specified private enterprises in States (Article 97 sub 6) and
silent on the federal one.

4) Individual traders carrying out a business in federal territory is also not specified. The constitution
only specified tax on individual traders in state territory, (Article 97(4)).

5) An Estate Tax it is levied on right to transfer property after death.3 Also this type of tax base is not
specified under 1995 FDRE constitution, so it is undesignated tax as per art.99 of same constitution.

6) Inheritance Tax it is much similar with that of estate tax, and as the name itself suggests, it is tax on
property transferred to heirs of the deceased person.4 This is also one among Undesignated tax, as it is
not specified as per the definition of undesignated tax above.

7) Fees for land usufractuary rights under Federal territory is also undesignated tax as it is not specified
by the constitution. Rather the constitution only specified that of state only, (article 97(2)).

8) Gift Tax A gift tax is the kind of tax wherein one individual transfers some valuable property to
another individual without payment.5 Also this type of tax base is not specified under 1995 FDRE
constitution, so it is undesignated tax as per art.99 of same constitution.

1
Berhanu Assefa (2006). Undesignated Powers of Taxation in the Distribution of Fiscal Powers between the Central and State Governments
under the FDRE Constitution, LL.B Thesis, Faculty of Law Library, Archives, pp. 49.

2
(https://www.tax.ny.gov/help/taxpayer-education/financial/2-filing-responsibilities-4.htm)

3
Ibid.

4
Ibid.

5
Ibid.
9) Taxes on income derived from private houses and other properties within the federal territory is
also not specified and not given to any tax jurisdiction. Rather the constitution only specified those
found in state territory.(Article 97(6)).

So, House of the Federation and the House of Peoples' Representatives shall, in a joint session,
determine by a two thirds majority vote on the exercise of powers of taxation of tax listed above, as per
Article 99 of the constitution.