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.