Ethiopia to reduce sugar tax

89

Addis Ababa: Ethiopian government is drafting a law in parliament to cut an excise tax on sugar from 33% to 20% before privatizing the sugar industry as per the government’s drive to open up the economy.

“The tax cut would help in reducing the inflation which is running at more than 20% a year and would benefit sugar manufacturer as well as consumers,” said a trader to news agency Reuters.

After taking office last year, Prime Minister Abiy Ahmed has launched a series of economic and political reform programmes that include decontrolling state-owned industries ranging from telecom to logistics to attract more foreign investment.

The Finance Ministry had in November stated that it had started valuation of the valuation of 13 sugar mills and will be completed by the end of December. The government stated that the first phase of privatization, including the sale of six sugar mills, would begin in the first quarter of 2020.

LEAVE A REPLY

Please enter your comment!
Please enter your name here