Ethiopia offers tax exemption for agricultural machinery

The tax exemption is yet to be implemented as of next month

Tax exemption _ Ethiopia
Picture : FBC

borkena
June 18, 2019

The Ministry of Agriculture disclosed on Tuesday that an amendment of tax law to exempt agricultural machinery imported from overseas from taxes, as reported by Fana Broadcasting Corporate (FBC).

State Minister for Agriculture, Sani Redi, has told FBC that legal frameworks prepared to help peasants mechanize farming practices.

Combine harvester and tractor are among machinery tools to be exempted from taxes.

Implementation guidelines of the amendment will be finalized in the first week of July.  The legal reform is informed by goals to make farmers get mechanized agriculture services at affordable prices. 

Service providers are expected to provide their services to where it is needed which means if what Sani Redi says is true, peasants need not go to service providers as service providers would.

It is unclear, however, if machinery that was allowed to the country with tax exemption is required by law to provide affordable services to peasants or if another mechanism, like price regulation, is put in place in that regard.

The policy initiative is also meant to give incentive, according to the state minister, investors in the sector and cooperatives, too.



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One Response to "Ethiopia offers tax exemption for agricultural machinery"

  1. Bruk   June 20, 2019 at 7:05 am

    In TIGRAY engineers are close to building agricultural machineries. METEC built so many tractors before the political change brought PM Abiy to power, now since General Kinfe was arrested METEC is selling it’s assets with all it’s experience and knowhow on building farm machineries forced to flee to Tigray.

    METEC’s highly skilled design engineers employees are vowing to help Tigray only being angry how General Kinfe was treated by PM Abiy’s goverenment.

    Now the 10s.of thousands of engineering students at METEC University are not given accrediation upon graduation by PM Abiy’s goverenment even though the students are better engineers than students that graduated with engineering degrees from other engineering schools in the country . It is said former Dergs Defense Construction Corporation CEO , General Tadesse attested to the skills of METEC University graduates but now Colonel Abit is denyi g the METEC University graduates accreditation.

    Reply

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