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Excise Tax in Ethiopia


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Ethiopian Excise Tax

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Ethiopian Revenue & Customs Authority (ERCA)


1. Excise Tax Proclamation No 307/2002 or 307/1994 EC and the amendment 610/2008.


Rate of Excise Tax


The excise tax shall be paid on goods mentioned under the schedule of the proclamation (and also found below)

1. When imported

2. When produced locally at the rate prescribed in the schedule.


Base of computation of excise Tax:


1. In respect of goods produced locally, the cost of production;

2. In respect of goods imported, cost, insurance and freight (CIF value)


Payment of Excise Tax


The excise tax shall be paid within the time prescribed according proc307 Sub-Article/2/

1. In respect of goods produced locally, by the producer;

2. In respect of goods imported, by the importer


Time of Payment


According to the excise tax proclamation, excise tax on goods shall be paid under the schedule

1. When imported at the time of clearing the goods from customs area;

2. When produce locally, not later than 30 days from the date of production.

The amendment includes some replacements of words and phrases and new added sub-article (4) under Article 27 of the Proclamation

S.N.


Type of Product


Excise Tax Rate (%)


Any type of sugar/In solid form excluding Molasses

33

Drinks

All types of soft drinks/except Fruit/ Juices

40

Powder soft drinks

40

Water bottled or canned in a factor

30

Alcoholic drinks

All types of beer & stout

50

All types of wine

50

Whisky

50

Others alcoholic drinks

100

All types of pure Alcohol

75

Tobacco & Tobacco products

Tobacco leaf

20

Cigarettes, Cigar, Cigarillos, pipeTobacco snuffs and other tobacco products

75

Salt

30

Fuel-Super Benzene, Regular Benzene, Petrol, Gas-online and other motor spirits

30

Perfumes and toilet waters

100

Textile and Textile products

Textile fabrics, knitted or woven of natural silk, Rayon, nylon wool or other similar material

10

Textile of any type partly or wholly made from cotton which is gray, white, dyed or printed, in pieces of any length or width /except mosquito net and "Abudgedid"/ and including blankets, bed sheets, counterpanes, towels, table clothes and similar articles

10

Garments

10

Disk washing machines of a kind for domestic use

80

Washing machines of a kind for domestic purpose

30

Video decks

40

Television and video cameras

40

Television broadcast receivers whether or not combined with gramophone, radio, or sound receivers and reproducers

10

Motor passenger cars, station wagons, utility cars, and land rovers, tips pickups, similar vehicles/including motorized caravans/ whether assembled, tighter watt gaur appropriate initial equipment.

Up to 1,300 C.C

30

From 1,301 C.C up to 1800 C.C

60

Above 1,800 C.C

100

Carpets

30

Asbestos and Asbestos products

20

Clocks and watches

20

Dolls and toys

20


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