Ethiopia offers tax exemption for agricultural machinery

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

Tax exemption _ Ethiopia
Picture : FBC

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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