Ethiopia In Need Of Modern Property Tax Law Framework

Ethiopia lacks a modern property tax law framework, causing complicated and wearisome grievances for taxpayers.

The application of the Proclamation on the Taxation of Urban Houses in Ethiopia has revealed how much work still needs to be done on the country’s tax legislation.

Ethiopia In Need Of Modern Property Tax Law Framework: the Importance

Property taxes are essential for local development, so it is concerning that Ethiopia still doesn’t have a modern property tax law framework.

According to Aschalew Ashagre (PhD), an assistant professor at Addis Ababa University School of Law specializing in property, agriculture, and private sector development, a draft property tax law was prepared last year but has been stagnant since then.

The absence of property tax provisions in the Ethiopian Constitution further isn’t helping matters either.

The antiquated Decree No. 80/1968, (enacted in 1971 E.C.) which covers tax determination, repayment periods, tax rates, and exemptions guides the taxation of townhouses.

This is however a problem because its five-decade-old framework is not fit for contemporary times and issues.

According to Aschalew, there is no legal or institutional framework in place to safeguard taxpayers’ rights well.

There is still a lot of work to be done if there is any hope of making the country’s tax system modern and effective.

All of these were discussed during a panel discussion titled “Impact of the Implementation of the Tax System on the Private Sector,” organized by the Addis Chamber in Addis Ababa.

The forum emphasized the importance of reforming Ethiopia’s present tax policy and legislation.

Aschalew demanded that the country’s laws and institutions be reformed to ensure a just, open, and accountable tax system that treats taxpayers right.

The discussion ended with a demand for comprehensive tax reforms to update Ethiopia’s tax system, safeguard taxpayer rights, and support the country’s economic growth and development goals.


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