July 19, 2024

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ethiopia hike taxes on tobbaco and beer

Ethiopia Hikes Tax Rates on Beer, Tobacco and Plastic Bags

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The government of Ethiopia has announced a series of changes to the excise tax rates on various products, including beer, tobacco, and plastic bags. However, these adjustments are part of the efforts of the Ministry of Finance to align the tax system with the evolving economic and social priorities of Ethiopia.

The Ministry of Finance of Ethiopia has made the following changes to excise tax rates:

Beer

  • Beer produced from local ingredients with at least 75% local content (excluding water) has seen a 30% increase, from 8 birr per liter to 21 birr per liter.
  • Other beer and beer-like beverages with alcohol content up to 7% have seen an 80% increase, from 15 birr per liter to 28 birr per liter.
  • Locally produced beer made entirely from barley has increased from 9 birr per liter to 23 birr per liter, a 35% rise.

Tobacco

  • The excise tax on a pack of 20 cigarettes has increased from 305 birr to 320 birr.
  • Other tobacco products have seen the excise tax reduced from 650 birr per kg to 250 birr per kg.

Plastic Bags

  • The excise tax on plastic bags increased from 40 birr per kg to 103 birr per kg.

Moreover, these changes are part of the government’s efforts to adjust excise tax rates on various products. The increases on beer and tobacco are likely aimed at discouraging consumption, while the plastic bag tax hike is likely to promote more sustainable packaging.

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