Twenty Directives Land to Administer Taxes
The process also includes collecting circulars and embrace them as a directive
The Ministry of Finance & Economic Cooperation (MoFEC) along with the Ethiopian Revenues & Customs Authority (ERCA) started drafting and amending no less than 20 directives which could make the process of tax exemption strict.
A group of experts divided into two subgroups from ERCA and MoFEC have dwelled in Bishoftu town for a month to draft the directives which are based on the Income Tax Proclamation, amended in 2016 and Tax administration proclamations which were drafted for the first time the same year.
Though the proclamations were enacted two years ago, they were not followed by directives. They were in use with circulars and old directives issued before the issuance of the proclamations.
“Though the process is late, the directives will clarify the ambiguity in the proclamations,” said Mulay Woldu director of the tax policy directorate at MoFEC.
The process also includes collecting circulars and embrace them as a directive, according to sources close to the matter. Reviewing penalty suspension, an extension of tax payment duration, use of vouchers, suspension of the administrative decisions under the tax administration proclamation are also the tasks of the team.