Excise tax imposed on new cars with engines below 1, 300cc reduced to 5%

Addis Ababa, January 17, 2020 (FBC) –The Ministry of Finance announced today revisions made on the new draft excise tax law.

The Ministry said the excise taxes levied on new cars with engines below 1,300cc, bottled water and tobacco are revised.

Accordingly, the excise tax on new vehicles with engines below 1,300cc  is reduced to 5% from the proposed 30%.

This, according to the ministry, will cut the prices of new vehicles by up to 83%.

The excise taxes imposed on bottled water is reduced to 10% from the proposed 15%, while increasing the excise tax on tobacco to 36% from 35%.

The revised draft law is expected to be approved by the House of People’s Representatives