Ethiopia: Finance Ministry Publishes List of Goods Exempt from Tax

The Ministry of Finance has issued a directive to determine the goods that are exempt from the social development tax levied on imported goods. This directive is called “Directive No. 1023/2017”.

According to this directive, to expand education and health services provided free of charge to the public and to help people who are in trouble due to man-made and natural disasters, goods sent with aid from foreign countries are exempted from tax because they help to achieve the purpose of social development tax.

The following items are imported exempt from social development tax:

1. Goods sent from foreign aid to the following social service institutions:-

A/ Government-owned or providing free services to the community:

– educational institutions,

– Health facilities,

– Children’s; Women’s Aid organizations for the elderly, mentally ill and disabled

B/ Goods sent with aid from abroad to organizations that provide emergency aid to people affected by man-made and natural disasters

2. Goods allowed to enter the country free of duties and taxes according to the international agreements signed by Ethiopia.

3. Ministry of National Defense, Federal and State Police Institutions, National Intelligence and Security Service and Information Network Security Administration import defense and public security equipment, parts and accessories for these services as permitted by law.

4. Coins, currency notes and silver and gold articles imported by the National Bank.

The items listed below will be imported free of social tax:

A/ Automobiles with less than 8 seats and their accessories.

b/ single or double cab and pick-up vehicles and accessories thereof.

C/ Office supplies and equipment.

According to this directive, it is mandatory to provide evidence of goods that can be imported duty free.

What kind of evidence should be provided?

1. Aid certificate proving that the goods were obtained through aid.

2. An invoice showing the list and price of the goods;

3. A letter of support from an appropriate government office confirming that the goods are used for the stated purpose and that the use of the goods will be reported to the Ministry of Finance and the Customs Commission.

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