New Income tax on salary introduced

Ethiopia has introduced a new income tax on salary. Officials from the finance and economy ministry said the new tax rate takes into account the varying income levels of the tax payers. 

 The Ministry of Finance and Economic Cooperation (MoFEC) has announced today the newly amended draft income tax proclamation.

The newly amended proclamation reduced the taxation of income from employees and took into account the earnings of the society, said Wasihun Abate, Legal Service Director at MoFEC.

Discussion on the proclamation will be held on Thursday and Friday with the business community, foreign companies and professional associations, he said.

The new proclamation will be effective as of July 1, 2008 EC after it is approved by the House of People’s Representatives.



Source: FBC 

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  • seid Mohammed Added As what I think, the decrements of income tax and increments of the monthly salary of the employees may not retard the inflation of living cost because the value of each item increase highly increased by the owners of the property. The owners consider that the government adds the salary of the employees due to this they increase the value of each items. There fore the government should have to interfere and punish those owners who increase the values of the item. Free market is not necessary for our market. It should have to be avoid.
  • seid Mohammed Added the newly adjusted income tax for employees resolve some problems because it adds some amount but it may not be the only solution to influence the inflation of living cost. the government should have to interfere in the individual items in the market.
  • Trit Mohammed Added Salary of the employment, number of nation , level of administration are related according to constitution of Ethiopia by any means the exempt amount of salary is not greater than 550 Bir .
  • Trit Mohammed Added WE try to per pair the research on the new income tax proclamation no. 938/2016
  • Trit Mohammed Added OVER ----------- TO
    We can say that unless other wise we can't deduct deduction fee
  • Trit Mohammed Added Ethiopia has introducing a new income tax on salary. official from the finance and economy ministry.
    But the new tax rate taken to in account the increasing the gap between poor and rich income level of the tax payers.
  • Trit Mohammed Added by any means the tax bracket of threshold can not greater than 550 according to constotution of Ethiopia.
  • Trit Mohammed Added As effective date in forced the new proclamation the oldest proclamation 286/2002 Article 6 can done.
  • Trit Mohammed Added We did pay may salsry of two nanths
  • Trit Mohammed Added According to Tax Administration ----2016 we try to give a number to this proclamation 183/2016 As we related to this proclamation according to this pro Article 98 and aarticle 99(1) until the day of force the oldest proclamation 286/2002 Article 6 must be done.

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