Council of ministers passes decisions on key economic bills

Addis Ababa, April 3, 2024 (FBC) – The Council of Ministers of Ethiopia, during its 28th regular meeting today, approved a bill on medium-term macroeconomic and fiscal framework for 2017-2021 E.C and forwarded another bill on value added tax to the parliament for approval with additional inputs.

The first agenda that the Council deliberated on is the medium-term macroeconomic and fiscal framework for 2017-2021.

The macroeconomic and fiscal framework is deemed crucial for aligning the government budget with the macroeconomic situation and fiscal capacity, guiding the preparation of the budget for the upcoming fiscal year by outlining policy directions for government revenue collection and resource allocation, as well as identifying and indicating policy directions for the fiscal balance policy and medium-term government revenue and expenditure.

Following thorough discussions on this legislation, the Council unanimously approved the implementation of the framework.

The Council’s second agenda centered on the value added tax bill.

According to the Office of the Prime Minister, this bill was crafted with the aim of incorporating the reforms introduced in the country’s economic activities since the inception of value added tax into the legal framework, and to safeguard the low-income segments of society from shouldering the burden of value added tax.

Following further deliberations on the second bill, the Council unanimously decided to submit the bill to the House of Peoples’ Representatives for approval with further potential inputs.