ADDIS ABABA UNIVERSITY

College of Law and Governance

Law school

Tax Law Individual ASSIGNMENT

Title: Lists of undesignated tax under 1995 FDRE constitution

NAME ID. Number

Tewedros Kassa.............UGR/9148713

Submitted to: Instructor Addissie

Submission date: April, 2024

Lists of undesignated tax under FDRE constitution:

Undisgnated tax is a tax base that has not specified in any of the existing tax jurisdictions and
no layer of government can claim its taxing powers extend to such tax base,1 Under FDRE
constitution. And the following below are lists of this tax:

1) Property tax it is a tax paid on real property owned.2 And it is one among Undesignated tax
under the 1995 FDRE constitution because it is not specified in any existing tax jurisdiction, as
per the definition of undesignated tax above. Rather the constitution only speak about tax on
income derived from this property, for federal government Article 96(6), and for States article
97(6).

2) Taxes on income of houses and properties owned by the state Governments Means
revenue due for government out of incomes of house and properties. also the constitution says
noting on this tax base, rather it says states shall collect rent not tax on houses and other
properties they own, (article 96(6)).

3) Tax on private enterprise in the federally administered territory means tax revenue from
private enterprise which is business type or the like is also not given to any level of government,
so it is undesignated tax. the constitution only specified private enterprises in States (Article 97
sub 6) and silent on the federal one.

4) Individual traders carrying out a business in federal territory is also not specified. The
constitution only specified tax on individual traders in state territory, (Article 97(4)).

5) An Estate Tax it is levied on right to transfer property after death.3 Also this type of tax base
is not specified under 1995 FDRE constitution, so it is undesignated tax as per art.99 of same
constitution.

6) Inheritance Tax it is much similar with that of estate tax, and as the name itself suggests, it
is tax on property transferred to heirs of the deceased person.4 This is also one among
Undesignated tax, as it is not specified as per the definition of undesignated tax above.

7) Fees for land usufractuary rights under Federal territory is also undesignated tax as it is not
specified by the constitution. Rather the constitution only specified that of state only, (article
97(2)).

8) Gift Tax A gift tax is the kind of tax wherein one individual transfers some valuable property

1
Berhanu Assefa (2006). Undesignated Powers of Taxation in the Distribution of Fiscal Powers between the Central and State
Governments under the FDRE Constitution, LL.B Thesis, Faculty of Law Library, Archives, pp. 49.
2
(https://www.tax.ny.gov/help/taxpayer-education/financial/2-filing-responsibilities-4.htm)
3
Ibid.
4
Ibid.
to another individual without payment.5 Also this type of tax base is not specified under 1995
FDRE constitution, so it is undesignated tax as per art.99 of same constitution.

9) Taxes on income derived from private houses and other properties within the federal
territory is also not specified and not given to any tax jurisdiction. Rather the constitution only
specified those found in state territory.(Article 97(6)).

So, House of the Federation and the House of Peoples' Representatives shall, in a joint session,
determine by a two thirds majority vote on the exercise of powers of taxation of tax listed above,
as per Article 99 of the constitution.

5
Ibid.