Professional Documents
Culture Documents
Chapter 4 - ETH Tax System
Chapter 4 - ETH Tax System
UNIVERSITY
ETHIOPIAN
TAX SYSTEM
Miss. Kiya B.
December 2023
Haramaya, Ethiopia
FEDERAL DEMOCRATIC
REPUBLIC OF
ETHIOPIA
CONTENTS
Structure of Ethiopian tax system and
administration
Income Taxes
Consumption Taxes
Stamp Duty
Custom Duties (Import and Export taxes)
Categories of Taxpayers
Tax penalty
Appeal procedure
Chapter Objectives
On successful completion of this Chapter, students should;
Understand the structure and administration of Ethiopian tax system
Know the income tax laws and practices
Realize about consumption taxes
Elaborate the stamp duties
Understand foreign trade taxes
4.1. The Ethiopian Tax System
Since its humble beginnings in the 1940s, the modern Ethiopian tax system
has developed and evolved by fits and starts as the needs for revenue arise,
as governments change and as the economy and international situations
shift. (Lencho, 2012)
The major tax reforms in Ethiopia occurred in the 1940s, in the aftermath
of the Ethiopian revolution of 1974, after the fall of the Derg in 1991 and
most recently in the 2002 tax reforms.
Since the founding of the EPRDF administration, Ethiopia has federal tax
system.
Article 98: taxes concurrent to both the Federal Government and the
Regional States
Article 99: taxes undesignated
TAXES ARE KEY TO SUSTAINABLE DEVELOPMENT!
Cont..
The major tax policy reform during the EPRDF period occurred
in 2002 (Mascagni, 2016), and the reforms were focused on the
three key taxes (i) income and profit taxes, (ii) taxes on goods
and services, and (iii) taxes on foreign commerce (Geda and
Shimeles, 2005).
The Ethiopian tax system has an
Operating set of legal institutions (such as the parliament, tax
authorities, and tax appeal tribunals and courts),
Procedures (for assessment, collection and complaints handling), and
Rules (the constitution, proclamations, regulations, directives, etc.).