Getahun Tsegaye
Staff Reporter
Addis Ababa, Ethiopia– The House of Peoples’ Representatives has discussed and approved a draft proclamation to amend income tax proclamation. The revised proclamation was approved today during the Federal Income Tax Proclamation House’s second emergency session.
This proclamation will come into effect starting July 2017 (2025) Fiscal year. Accordingly, the income tax proclamation approved today will be implemented as follows:
- 0 – 2,000 Birr: 0%
- 2,001 – 4,000 Birr: 15%
- 4,001 – 7,000 Birr: 20%
- 7,001 – 10,000 Birr: 25%
- 10,001 – 14,000 Birr: 30%
- Above 14,000 Birr: 35%
Notably Kassahun Follo, President of the Confederation of Ethiopian Trade Unions, previously stated during discussions about the income tax proclamation, “You don’t collect tax from someone who can’t survive; you don’t collect tax from someone who doesn’t eat and sleep!”
He also said, “As a country, tax must be collected, and development must continue; human life must also continue; people cannot work while hungry, they cannot be productive!”
At the time, Kassahun had suggested that income tax should only begin for earnings above 8,324 Birr.
Kassahun opposed the idea of the 35% tax starting from 14,100 Birr, arguing that given the current cost of living, such a high tax should not be imposed, and he debated this point in Parliament.
Some opposition parties in the country and workers union are speaking out against the devastating nature of the legislation in light of the unbearable cost of living.
Support Borkena : https://borkena.com/subscribe-borkena/
Join our Telegram Channel : t.me/borkena
Like borkena on Facebook
Add your business to Ethiopian Business Listing / Ethiopian Business Directory Business Listing Toronto
Join the conversation. Follow us on X (Formerly Twitter) @zborkena to get the latest Ethiopian News updates regularly. Subscribe to YouTube channel To share information or for submission, send e-mail to info@borkena.com