Department of public financial

Management and Accounting

Research proposal
for full fillment of master in accounting and finance

Title: The Effect of Customs import duty and Tax Expenditure

(Export trade duty incentives) on Revenue collection
inthe case of A
A air port and kaliti customs branch offices

prepared by
1. Mohammed Ali
    

Submitted to: DR Binyam B

January, 2019

Addis Ababa

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 Table of Contents
Acronyms....................................................................................................................................................................ii

CHAPTER ONE.............................................................................................................................................................1

INTRODUCTION..........................................................................................................................................................1

Background of the study............................................................................................................................................1

1.1. Statement of the problem............................................................................................................................2

1.2. Objective of the study...................................................................................................................................3

1.3. Research questions.......................................................................................................................................3

1.4. Limitation of the study.................................................................................................................................3

1.5. Scope of the study.........................................................................................................................................4

1.6. Significance of the study..............................................................................................................................4

1.7. Organization of the paper...........................................................................................................................4

CHAPTER TWO............................................................................................................................................................6

2. LITERATURE REVIEW..............................................................................................................................................6

2.1. Definition of tax expenditure?.............................................................................................................................6

2.2. Objective of tax expenditure...............................................................................................................................9

2.3. Tariff Quotas and Tariff Exemptions.................................................................................................................10

2.4. What are the different types of tax expenditure?.............................................................................................10

2.3. Measurement of tax expenditure.....................................................................................................................11

2.4. Conceptual Framework.............................................................................................................................12

CHAPTER THREE.......................................................................................................................................................13
RESEARCH DESIGN AND METHODOLOGY................................................................................................................13

Introduction..............................................................................................................................................................13

2.1. Research Design.........................................................................................................................................13

2.2. Population and sampling Technique.........................................................................................................13

2.2.1. Sampling techniques..............................................................................................................................13

2.3. Data collection Instruments......................................................................................................................14

2.4. Procedures of Data collection....................................................................................................................15

2.5. Methods of data Analysis...........................................................................................................................15

2.5.1. Objectivity..............................................................................................................................................15

Reference..................................................................................................................................................................16

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Acronyms

COMESA Common Market for Eastern and Southern Africa

EIC Ethiopian Investment Commission
ERCA Ethiopian Revenues and Customs Authority
FDI Foreign Direct Investment
FDRE Federal Democratic Republic Of Ethiopia
GTP growth and transformation plan
HQ Head Quarter
HS Harmonized system
MOFED Ministry Of Finance and Economic Development
OECD Organization for Economic Co-operation and Development
ICAO International Civil Aviation Organization

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 CHAPTER ONE

INTRODUCTION
1. Background of the study

Duty and Taxes increases the tax payers cost of capital or outlay money due to the
payment of , so an import or export customs duty and taxes therefore, by deducting or
reducing, or exempting such costs governments try to encourage capital investment, to
attract foreign direct investment there by to get markets for their products in the
international markets and generate foreign currency.

Almost every argument used to support or criticize the implementation of tax and customs
import duty expenditure in the form of incentives, in developing countries are arguable for
the fact that such expenditures are included in the formal budgetary and reporting process
and due to unavailability of data on it becomes difficult to measure; in addition to this
there is lack of model, and legal frame work for reporting such matters and lack
transparency and accountability developing countries like Ethiopia. Lack of the guidance
to implement and establish system to measure and report the effect of the tax and
customs import duty expenditure or export duty incentives on their economy as a hole and
on their revenue collection specifically so as to evaluate the achievement of the pre-
determined economic goals these kinds of policies are intended to achieve.

According to ERCA’s unpublished document the government of Ethiopia has made great
efforts to enable the country to have a competitive investment policy with continual
improvements by encouraging trade and investment. The Investment Proclamation has
taken steps to create a capital stock for foreign and domestic investors. In addition, a
system of tax filing and tax refund system through export trade duty incentive scheme
proclamation number 768/2012 and investment and duty free proclamations and
different rules and regulations the government introduced customs import duty and tax
expenditure system .Some of them are the following

1- Bonded Manufacturing Warehouse scheme

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2-Bonded input supplies warehouse scheme

3-Export voucher scheme

4-Duty free scheme

5-Duty draw back scheme

6-Bonded export factory scheme

7-Industrial zone scheme has been introduced to encourage investors engaged in export
business. The government's main reason for encouraging domestic and foreign investors to
invest in the private sector is to increase the private sector, create more jobs for the people,
bring technology transfer, improve the management skills, transfer knowledge, attract
foreign capital, increase domestic capital and generate foreign exchange, and to enable
them to contribute the country's growth.

The government tries to encourage investment and promote the inflow of foreign capital
and technology as well as to get enough foreign exchange or hard currency . Because such
expenditures are as simple as they do not require direct financial outlay in the form of
budget allocated for the achievement of government policy objectives ; so by using such
tools as a policy try to meet targeted objectives and psychologically since there is no
formal direct financial expenditure there is such understanding by all as if they are as
important as the direct budget allocated. some of the steps taken by the government to
achieve the foreign trade and investment of the nation by using tax expenditure system in
the form of export trade incentives to investors engaged in areas eligible for tax
expenditure: The intention of these tax expenditures is by exempting or reducing customs
import duty and tax minimizing tied up capital of those who are investing their money
,knowledge and time in the above mentioned areas enabling smooth business area and
there by generating enough foreign exchange or hard currency which in turn support the
trade balance of the country.

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This study will try to assess the effect of customs import duty and tax expenditure of duty
drawback, export voucher scheme, bonded export factory warehouse, bonded
manufacturing, bonded input supplies warehouse, industrial zone schemes , second
schedule, preferential tariff treatment and duty free incentive /expenditures/ on revenue
collection of the Ethiopian customs commission Addis Ababa air port and kaliti branch
offices.

1.1. Statement of the problem

Many governments offer tax expenditure to attract investment, yet policies often fail to
fully assess their likely costs and potential benefits. Incentive policy should balance the
higher revenues and social benefits jobs, positive externalities, signaling effects from
possibly increased investment with the indirect costs of incentives such as administrative
cost and the revenue losses from incentives given to investments that would have been
made even without them. Sebastian (2010)

Any incentive policy requires constant monitoring to prevent leakage, imposing an

additional burden on tax authorities. Excessive use of tax incentives complicates
administration, facilitates evasion, and encourages corruption. Khan (2006)

Basically duty free/tax expenditure/is given in the Ethiopian context to attract foreign
direct investment, to create employment opportunity, to enhance the foreign currency
generation and to transfer knowledge and technology. These are the objectives of granting
export duty incentives and duty frees. The most important question is that what is the
effect of customs import duty and tax expenditure on revenue collection of the
commission? How it affects foreign currency generation are the most.

1.2. Objective of the study

The general objective of the study is to assess the effect of tax expenditure on revenue
collection; the specific objective of this study is;

 To examine the effect of customs import duty and tax expenditure on revenue
collection

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  To assess the existence of reporting mechanism for such expenditure and the
understanding of the matter in comparison to the direct budget expenditure
 To assess the performance and effect of export trade and their foreign currency
generation
 to see if enough foreign currency is generated that can help for importing other
capital goods and services which in turn help in collecting more revenue in the form
of customs import duty and tax.

1.3. Research questions

 What is the effect of customs import duty and tax expenditure on revenue?
 How tax expenditure affect generating foreign exchange?
 what is the relationship among tax expenditure, foreign exchange and import duty
and tax?
 Is there any reporting mechanism for tax expenditure? who is accountable for the
subject matter?

1.4. Limitation of the study

The study is limited only on assessing the effect of customs import duty and tax
expenditure on the above specified issues. It does not cover the effect of inland tax
expenditures like tax holidays, depreciation, and other the like or further economic
analysis on the tax expenditure such as the impact of tax expenditure on number of schools
that could be constructed had the tax have been collected. So its intention is calculating the
revenue forgone. It does not take into consideration the negative impact of the uncollected
revenue rather it shows the impact (effect) of tax expenditure (duty free) on generating
hard currency, and the interrelationship among the foregone revenue, the foreign
exchange generated by using the above mentioned incentive and the amount of revenue
collected since the introduction of the customs import duty incentive and export duty
incentives . It also does not take into consideration the domestic tax expenditure such as
tax holiday, and domestic revenue related expenditures.

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 1.5. Scope of the study

The study focuses on customs import duty and tax as well as export duty incentives impact
that is the second schedule, preferential tariff treatment and export duty incentive
/expenditures/ on the manufacturing sector from 1998E.C to 2002 E.C at authority level
and since 2003-up now 2011 E.C at kaliti and Addis Ababa air port customs branch
offices .

1.6. Significance of the study

This study is significant on showing the effect of the customs import duty and tax and
export duty and tax expenditure/ granted to the privileged. It will also show how it affects
the revenue collection and generation of foreign exchange, it will also show the methods or
ways of calculating tax expenditures the principles how to analyze using frame works how
to report and the benefits of reporting such expenditures . It will support policy maker on
analyzing the cause and effect relation.

At the end of the study, it will intend to provide valuable information to the government
bodies’ i.e. Ethiopian revenues and customs authority & investment commission & the
society regarding their employee’s perception about the tax system, duty free/tax
expenditure/ and its administration. Also From the forwarded recommendation they will
take the constructive comments to improve the system. It will also serve as a stepping
stone for other researches which will be conducted in similar topic area in the future. &
finally it will increase the knowledge & ability of the researcher groups in conducting in
similar studies.

1.7. Organization of the paper

This proposal is organized in to three chapters. The first chapter provides an introduction
to the study. It contains background of the study, statement of problem, objectives,
research questions, limitation, scope and significance of the study.

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The second chapter is the literature review of the study. In this part literatures related to
the topic will be reviewed. It includes review of different books for identifying the main
theoretical perspectives. In addition prior studies will be reviewed.

The third chapter explains methods of the study. In this chapter the type and design of the
study, the subjects and sampling of the study, sources and tools of data collection,
procedures of data collection and the data analysis techniques will be discussed.

CHAPTER TWO

2. LITERATURE REVIEW
2.1. Definition of tax expenditure?
It is better to give the definition duty and tax before delivering the definition of tax expenditure.

what is duty? what about tax?

Duty is a charge levied and collected on any import or export goods in accordance with the customs
tariff regulations issued pursuant to this proclamation and international

“Tax expenditure is the revenue spend that the tax system would otherwise generate”
Thomas F.poge. Tax expenditure is the foregone amount of revenue that would have been
as a budget surplus to the government or revenue authority. Tax expenditure is not the
direct outlay (expenses) that have been made by the revenue collecting authority as a
means for collecting revenue like salary, and other inputs. Rather it is the forgone/
uncollected/ amount of money/revenue/ which is granted to the individual/business/
private sector as incentive in order to participate pr engage in some specific area of the

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economy that would have been positive impact. They are special provisions administered
by revenue authority. (Thomas f.pogue 2009)

As (Thomas F.pogue 2009) tax expenditure concept and framework for analysis paper New
Mexico taxation and revenue department indicated tax expenditure fall in to two broad
categories. One consists of the tax expenditures that provide incentive and funding for
individual and business to engage in activities that policy maker see a serving public
purposes, such as entering the work force or increasing hours worked, purchasing solar
energy systems, or producing energy from alternative sources. The other consists of tax
expenditures that provide resources to tax payers who have specified characteristics or are
in particular circumstances. Such law income, workers and elderly. Tax expenditures are
those intended to achieve public policy objective that are not directly related to the fair and
efficient of tax revenues.

Tax expenditure is the gap between potential tax revenue which does not contain
preferential tax provision, and the net tax revenue or the tax revenue received. tax
expenditure can be granted in three ways. Sales tax expenditure which is composed of
import supply sales expenditure and local supply sales expenditure. This is the amount of
revenue which is excluded from the basis of tax during tax assessment on the amount of
duty and taxes exempted or reduced or granted as a duty free during importation for those
who engaged in areas which are given such rights and provisions. (Ather Maqsood Ahmed
and Robina Ather2014)

Customs duties are also one of the 3 types of tax expenditure This is the amount of revenue
for gone otherwise have been collected either through reduced tariff rate, or special
treatment or provision through bilateral, multilateral and unilateral agreement or totally
exempted or allowed to be free from any duty and tax by the policy or different
proclamations and rules. The 3rd types of tax expenditure is based on the income tax
expenditure that grants deductions for the cost that used to generate the revenues and for
the brackets of tax payers that is also concealed as tax expenditure.(ibid)

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Based on the national conference of state legislatives the forum for America’s ideas tax
expenditure budgets and report tax expenditure is defined as it is as exemptions,
deduction, exclusion or other deviations from the normal tax structure.

Based on the Ethiopian foreign trade policy page 27 the Ethiopian national tariff is based
on the harmonized system. Following the ratification of proclamation no 67/1993 article 5
the definitions and powers and duties of the council of ministers and the executives organs
the federal democratic republic of Ethiopia proclamation no 4/4994 and article 51(1) of
proclamation 60/1997 all custom tariffs revisions and amendments scale 1993 have been
done on the international accepted commodities descriptions Coding System of the HS
including the latest amendment of import tariffs Regulation No. 209/2003.

The Harmonized System (HS) is articulated in 4 digits, 6 digits and 8 digits of the
Harmonized System (HS) tariff item number. All import and export tariffs are based on ad
valorem duties. There are no preferential tariffs other than for imports from the COMESA
member states. All imports from the Sudan (Proclamation No 318/2003 and Article 4 of the
Agreement), and imports of salt, fish and fish products, and bottled or canned water from
Djibouti are zero-rated. A series of customs tariff amendments and measures have been
taken since 1993.The maximum import tariff has been decreased step by step from 230
percent to 35 percent.

The average tariff rate has also been reduced from 41.6 percent to 17.5 percent and tariff
bands from 23 to 6 including the zero rate bands. As per Regulation No.80/2002, the Trade
Promotion Manual for Ethiopian Diplomatic Missions FDRE Ministry of Foreign Affairs 28
existing customs tariff amendment has been done in January 2003. At present, there are
five import tariff bands excluding zero rates. They are 5,10,20,30 and 35 percent.
Accordingly, the tariff bands, the number of tariff lines, imports and share of imports for
the year 2003 are shown in the Table below.

Table 1: The Existing Distribution of Tariff Bands

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 Tariff Bands Number of tariff lines Share of tariffs
(Percent Ad Valorem)

0 179 3.2%
5 1391 24.8%
10 1370 24.4%
20 1004 17.9%
30 725 12.7%
35 934 16.7%
Total 5608 100.0%
Source: Ethiopian customs Authority tariff 1 and 2 books (2003)

The number of tariff lines is 5608, out of which 5424 are subject to ad valorem duties while
the rest are duty free items and prohibited. Currently the lowest and highest tariffs are 5%
and 35% respectively, which makes the dispersion of 30%. The current simple arithmetic
average of all tariff lines is 20 % and the weighted average tariff rate is 17.5 %. As indicated
in Table 3 above, the share of 2003 annual imports of goods falling within each band is as
follows: zero percent band, 4.3 %; five percent band, 20.1 %; ten percent band, 15.8%,
twenty percent band, 13.7 %; thirty percent band, 15.1 %; thirty-five percent band, 31.0 %.
In general, the duty-free category of imports is mostly comprised of fertilizers, articles of
wood, railway or tramway locomotives, rolling-stock and parts thereof, aircraft, spacecraft
and parts thereof, etc. Within the 5 and 10 percent bands are raw materials and
machineries, which are used by manufacturing industries. Items within the 20 percent
band include organic chemicals, carton, boxes, envelopes, sacks and bags, thread, synthetic
filaments, artificial filaments, yarn and synthetic monofilament staple fibers. Items within
the 30 and 35 percent bands include perfumes, soaps, tiles, transmission belts, ornaments,
silk, cotton, jewelry, footwear, motor vehicles, textiles products and toys. To encourage
sect-oral development, and to accommodate social health and security issues, the Ethiopian
customs tariff book also contains the second schedule which mainly lists conditional
exemptions at Trade Promotion Manual for Ethiopian Diplomatic Missions FDRE Ministry
of Foreign Affairs 29 nil or reduced rates and exemptions at nil for importation by or on
behalf of privileged organizations, persons, public bodies and institutions.

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2.2. Objective of tax expenditure

According to ERCA web site www.erca.gov.et the objectives of tax expenditures/duty free/
are the following:

 It assures the benefit of the nation's economic growth and the benefit of the people;
 Creates favorable conditions for many investors to enter the country to invest their
capital and technology;
 Creates job opportunities for many citizens and builds different infrastructures on
the revenue generated from the collected tax that benefit the community.
 Creates technology and knowledge transfer;
As a result, the government granted taxpayer privileges of 11 billion birr on the first
Growth and Transformation Plan (GTP) and provided substantial encouragement and
support to the investment sector. In the country, various investment opportunities and
several jobs were created.

Not only this in case of knowledge and technology transfer there had been a visible change
due to different tax incentives and duty privileges which are provided by foreign and
domestic investors especially in the manufacturing sector in connection to the different
custom export schemes and the expansion of industrial zones in different regions of the
country new technologies and knowledge are being transferred.

2.3. Tariff Quotas and Tariff Exemptions

Ethiopia does not apply tariff quotas. However, there are tariff exemptions (relief from
duties and taxes) for various kinds of imports. These include:

 Exemptions granted on imports by diplomatic missions or consular privileges

according to the Vienna Convention;
 Relief on goods imported for education, scientific and cultural materials (UNESCO
agreement);
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  Equipment or material related to International Civil Aviation Organization (ICAO
Convention);
 Commercial samples and advertising materials;
 Importation of tourist publicity documents and materials;
 Goods for display or use at exhibitions, fairs and meetings;
 Relief on personal effects imported by investors and capital goods for the specific
project under the permission of government authorities;
 For goods imported for home use by international organizations and etc.;
 Exemptions for humanitarian and religious purposes; and
 Tariff exemptions granted by Proclamation no. 249/2001 (revised in 2007) (revised
768/2004) MOFED directive No 35/2005 and ERCA directive 86/2005 (revised
103/2016) as export trade duty incentive scheme.

2.4. What are the different types of tax expenditure?

According to the world bank policy paper series on Pakistan PK 21/12 January 2014
written by Ather Maqsood Ahmed and Robina Ather generally tax expenditure can
classified in two three broad basis. Based on the sources of the tax

1. Income tax expenditure

2. Sales tax expenditure
3. Customs duty and tax expenditures
Based on the OCED book on tax expenditure pp.14 tax expenditure can be classified as
allowances, exemptions, rate relief, tax deferred and credits. According to the way how
they have been granted to the beneficiary.

According to Regulation 768/2004 Based on the current Ethiopian context duty free/tax
expenditures/ is granted in the following forms:

1. second schedule or reducing import duty rate for different manufacturers as well as
exporters
2. Different export incentives
A/ duty drawback scheme

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 B/ voucher scheme
C/ bonded manufacturing warehouse
D/ bonded warehouse
E/ duty free
F/ industrial zone

2.3. Measurement of tax expenditure

Tax expenditure can be calculated or measured using the revenue forgone or uncollected
amount method. This method calculates the tax that would have been payable if the tax
concession was removed and economic behavior remained unchanged. There are two ways
of measuring the tax expenditures;

1. Based on the assumption of changed or unchanged behaviors and changed or

unchanged revenue from other taxes we can measure tax expenditure as
1.1. Initial revenue loss or gain

1.2. Final revenue loss or gain

2. Based on the way of direct expenditure that would be required in pre tax terms to
achieve the same after tax effect on tax payers income as the tax expenditure if
direct expenditure is accorded to the tax treatment appropriate to the type of
subsidy or transfer in the hands of the recipient we can measure tax expenditures
using outlay equivalence method.

2.4. Conceptual Framework

This study investigates the impact of tax expenditure on economy. In this study the
dependent variable of the study is economic growth while the independent variables is the
availability duty free /tax expenditure/.According to (James, 2009) tax incentive can be
considered as beneficial when they satisfy the conditions mentioned below:

Lost revenue from Indirect costs of tax

Economic growth responds
strongly to the tax
expenditures and revenue
rises
Social benefits from
investments that would expenditure
increased investment due to
have been made anyway
the tax expenditure
but receive the tax
expenditure

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Figure 1. Conceptual Frame work

CHAPTER THREE

3. RESEARCH DESIGN AND METHODOLOGY

3.1. Introduction

This chapter deals with the research design and the methodology that will use in gathering data
for the study. It contains the research design, the sampling method and the sample size, source
of data, variables of the study, data collection procedure and data analysis techniques and
finally reliability, and validity section.

3.2. Research Design

Based on its purpose the study is explanatory type. It emphasis on studying a situation or a
problem in order to explain the relationships between variables in this study it is used to
explain the relation between impact of tax incentives against economic growth. According to
(Saunders et al. 2009) “explanatory studies establish causal relationships between variables”.

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The data will be collect by employing a survey strategy can be use to suggest possible reasons
for particular relationships between variables and to produce models of these relationships. In
addition survey strategy as it use samples it will enable to generate a representative finding of
the whole population at a lower cost (Saunders et al. 2009).

3.3. Population and sampling Technique

3.3.1. Sampling techniques

For this study the source populations are the current government officials/employees in
investment promotion department & duty free scheme department of Ethiopian Investment
commission and Employees of Ethiopian revenues & Customs Authority incentive
administration & investment promotion support team. Due to the difficulty in addressing all
concerned government bodies throughout the country the researcher will use a
convenience/deliberate sampling technique. It’s a non probability sampling technique that
involves purposive or deliberate selection of particular units of the universe for constituting a
sample which represent the universe.

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The preliminary survey undertaken by the researcher before questionnaire distribution
indicated that there are two government offices & two departments that are considered to be
most relevant for the study. The sample population of this study comprises employees from
two different government bureaus. I.e. from Ethiopian investment commission the investment
promotion & duty free scheme department and from Ethiopian revenues & customs Authority
HQ support team for tax incentive & from kality Branch incentive administration department. A
total number will take as a sample is 44 out of that 36 found in ERCA head office investment
support team and Kality incentive administration and the rest are taken from Ethiopia
investment commission.

3.4. Data collection Instruments

There are different techniques on how to collect data. The chosen alternative depends on which
method best answers the question of the investigation/study.

This study will use both primary and secondary sources of data. The primary data will be
collected through questionnaire. The questionnaire questions are direct, simple and grant the
respondents the opportunity to reflect on them and answer at their own time but within the
time period.

The questionnaire will have four sections. The first section will be on the background of the
respondents, which request information on the age, sex, work experience, educational
qualification. The second section will be about the availability of tax expenditure. The third
section will be about investment specially FDI which create job opportunity and generate
foreign currency. The fourth section will focus on the linkage/relationship linking economic
growth & tax expenditures.

Secondary data will be available they refer the data which have already been collected and
analyzed by someone. The secondary data will collect from different publication, documents in
EIC & ERCA also proclamations were used.

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 3.5. Procedures of Data collection

The construction of a research instrument or tool for data collection is the most important
aspect of a research project because anything you say by way of findings or conclusions is
based upon the type of information you collect, and the data you collect is entirely dependent
upon the questions that you ask of your respondents.

The form of questionnaire that will be used in the study is a combination of close ended & open
ended. The questionnaire will be distributed for promotion & investment incentive
administrative officials who will be selected through convenience sampling. In the closed form
of questionnaire the respondents choose one of the alternatives as possible answers. The
questionnaires will directly give to the respondents. Thus, the respondents will answer the
questions and the filled questionnaires that will be collected from each respondent according
to the time line provided for data collection.

3.6. Methods of data Analysis

Analysis of data means studying the tabulated material in order to determine inherent facts or
meanings. It involves breaking down existing complex factors into simpler parts and putting
the parts together in new arrangements for the purpose of interpretation.

The collected data will be analyzed by using both descriptive and inferential statistics.
Descriptive statistical analysis is concerned with numerical description of a particular group
observed. From descriptive statistics percent, frequencies will be used to analyze the variables
of the study.

3.6.1. Objectivity

Objectivity is the absence of the researchers influence on the results of the study, It is about
limiting the influence of the researchers own value, interest and intention. The researcher will
try to keep a high level of objectivity in all works of the study by trying to search for
information from varies sources and triangulating the findings in the analysis. And since this
study is not written at the request of any company or organization there is no pressure on the
researcher to reach at a specific conclusion, which has made keeping an objective perspective.

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Reference

Alexander Klemm (2009),casue ,Benefit and risk of Business tax incentives. International ontery
fund

Ather Maqsood Ahmed and Robina Ather(2014) : Study on Tax Expenditures in Pakistan. World
Bank Policy Paper Series on Pakistan PK 21/12

C.R kotari (2004) Research Methodology methods and techniques 2nd edition.

Council of ministers and the executives organs the federal democratic republic of Ethiopia
proclamation no 4/1994

Edward Mwachiga, Effectiveness of tax incentive in attracting investment evidence and

policy implication.

Ethiopia investment guide 2012, 2013. Addis Ababa Ethiopia

Ethiopian foreign trade policy

Ethiopian Revenues & Customs Authority (2001) Incentive on Income Tax Administration and
Regulation no 21. Addis Ababa, Ethiopia

FDRE (2001): A Proclamation to Establish Export Trade Duty Incentive Scheme. Federal
Negaret Gazeta 7th year no39 .Addis Ababa, Ethiopia

FDRE (2012): Council of Ministers Regulation Investment Incentives and Investment Areas
Reserved for Domestic Investors Federal Negaret Gazeta 19 th year no4 .Addis Ababa,
Ethiopia

Kenneth. P Thomas (2007) Investment Incentives: Growing up, uncertain benefits, uneven
controls university of missorri st.louis.

OECD (2007): Tax incentive for investment- A global perspective: Experience in MENA & Non
MENA countries.

Sebastian James(2009) tax & non tax Incentive & Investments: Evidence & policy
implication. World Bank group

Thomas F.poge (2009): tax expenditure: Concept and Framework for Analysis

Yoges kumar (2006) fundamental of research methodology & statics

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