Commercial Bank of Ethiopia Adds Value Added Tax to its Services

The Commercial Bank of Ethiopia has added value added tax (VAT) to its services. According to the new Value Added Tax Law No. 1341/2016 issued by the government recently, it was announced that additional value tax will be levied on the services provided by banks.

The Commercial Bank of Ethiopia CBE has issued a statement confirming the addition of VAT to its services. “It is the duty of our bank to fulfill the obligation under new Value Added Tax Law No. 1341/2016. Therefore starting from October 1, 2024, we are adding VAT to our services”, the bank said.

The commercial bank of Ethiopia has imposed value added tax on the service charge on the products and services it provides. Other banks are also expected to imposed similar tax on service provision.

In the tax sector, radical changes have been introduced by the Ethiopian government in connection with the new foreign exchange rates. The government plans to collect 1.15 trillion birr in taxes this fiscal year, which is more than double the 502 billion birr that was planned to be collected at the beginning of the fiscal year. As a result, Ethio Telecom, Ethiopian Electric Power and other government institutions are making tariff revisions on the services they provide.

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