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ann eauheinitron PNET:PROCLAMATION NO__/2023
EXCISE TAX (AMENDMENT) PROCLAMATION
WHEREAS, it has become necessury o lower the exaggerated excise tax rate imposed on
imported new vehicles and some other items;
WHEREAS, itis found not proper to grant persons and organizations with special tax and duty
privileges to also import goods on which excise tex Is imposed because of he damage they
inflict on the environment Ire of excise tax,
WHEREAS, itis believed that imposing excise tx on telecommunicaton services will help
lgeterate more revenue to finance development stiviies carried out by the Government,
NOW THERFORE, in accordance with Article (1) of Constitution ofthe Feral Democratic
Republic of Ethiopia iis hereby proclaimed as follows
1. Shon Tite
“This Proclamation may be cited as “Excise Tax (Amendment) Proclamation No. _/2023.
‘The Excise Tax Proclamation No.1186/2020 (as amended) is hereby futher amended as
follows:
‘The following new sub-articles (23), (24) and (25) are added after sub-antole (22) of
Anicle 2 and the existing. sub-aricles (23)(34) are renumbered fiom (26)}437)
respectively
"23. Btn alcohol” means alcohol of purity of 80 degrees or mores”
"24, “New Vehicle” means a vehicle that as not been used over whats tated inthis sub-
tate since its manufacturing year and incest following:
imported in semi-knocked Down (SKD) or Complete Knocked Down (CKD) form to
be essembled by local industry;
1 Complete Built Up (CBU) vehicle off heading 87.02, 87.03, 87.04, 87.05 and
8711 which arives atthe Ethiopian eusoms tetery (entry poit) within a time
Petiod of three Gregorian calendar yeas including the manufacturing calendar year of
{he vehicle and when the number of kilometers driven abroad atthe ine it arives
‘he Ethiopian custom reritory (entry point) doesnot exceed 4,000 ki ometes,
If the vehicle is not covered under subdeter (b) of this sub-aricle it arives at
Ethiopian custom Fy point) within time period of four Gregorian
rng calendar year ofthe vehi,”"25. “Used Vehicle” means vehicle not covered under sub-artcle24o"this Aicle and
the age is counted beginning the manufacturing Gregorian calendar year to the
‘Gregorian calendar year fits aval at Ethigpian estoms territory (entry pain)”
2. ‘Sub-Amicte @) Article $ ofthe Proclamation is deleted and replaced byte following new
sub-article 2:
“2, Excise Tax shall be charged atthe rate specified inthe fist Schedule 1 attached
herewith forthe excsable goods and services in fore athe ime the lib arises fo"
excise ax as determined under Article 9 of this Proclamation”
3. The following new sub-artcle (3) is aded afer sub-article (2) of Article (5) of this
Proclamation:
“Q) The commencement date for colletion of excise tax charged on edible animal or
vegetable fats and oils and thei cleavage products specified in Schedule 1 attached
herewith as classified in Chapter 15 ofthe Customs Tarif shall be determined by the
Ministry of Finance based on the information it receives from the Miniszy of Health™
4 Sulbartol | (a) of Aicle Bis deleted and eeplace bythe following new
“a. exempt goods which meet the conditions stout under the Second Schedule stached
with this Proclamation”
5. The following new sub-avile (5) is added ater ub-atile (af Antioie 43
* 5. Excise sax om goods tobe imported into Ethiopia ice of any anes and duties, for
which bank permit hs been ebtained prior to the enactment of this Proclamation snd
Imported within two months trom the effextive date of this Procamation shall be
assesed and collected in accordance with the Excise Tax Proclamation No, 11862020
(as amended.”
3. fective Date
‘This Proclamation shall ener nt force on tis_éaya_2003,
\ SAHLEWORK ZEWDE
|| _ PRESIDENT OF THE FEDERAL
// eMocRATIC REPUBLIC OF ETHIOPIASECOND SCHEDULE
PART A
EXEMPT EXCISABLE GOODS
The following excisable goods shall be exempt ftom excise duty
L
EExcisable goods that are bona fide stores for aircrafl, being gcods for use oF
consumption by passengers or crew of aircraft while on board and while the
aierafl i in international trafic;
[Excisable goods imported into Ethiopia or purchased in Ethiopia oy a diplomatic
‘or consular mission, or by a diplomat or consul, or a member of the diplomat or
consul's family forming-part of the diplomat or consul’ household in Ethiopia to
the extent provided for under the Privileges and Immunities Regulations;
imported consignments for emergency relief in response to an emergency call
issued by the Government;
‘All goods ported oF purchased Tocally Tor The oMeal use By The Fakiopian
Defense Forces and the Federal and State Police Commissions as provided in a
Direeive issued by the Minster;
Excisable goods except vehicle imported by, and in the possession ofa passenger
subject to imitations provided fr inthe appropriate aw.
PART B
EXEMPT EXCISABLE SERVICES -
‘The following excisable servi
shall be exempt from excise duty
Excisble services supplied in Etipia wa diplomatic or consular mission or
to a diplomat or consl, ot 2 member of the diplomat or conus fray
foxing prt of siplomat ox consis hosshol in Eig tothe eet
provided Forder te ileges an nantes Regulations