**

fh.Tr-kl ~1-c.t-f\'~/loht-f1.1' tT-ot\.h

~Yot.1A ., ;JtT ;JJtll]

FEDERAL NEGARIT GAZETAOF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

9rh Year No. 20

"IO~~ ~oP:" eliTe t; Oh.:"V-k, 4..1..&-" -'tlfOht-ft.' &1".o"-h II
ADDIS ABABA-31 December. 2002
"'-'t" "'OI1-';t"U..,P'
f)'1+' IDf1~
fiMHI "'IDt}V-~9"tIc 0."" ml1<t~""fIDII}

tPf(J}65J. CONTENTS
Proclamation No. 307/2002
"'''~ eII'I'Crf1/Iiif~~ ~.9" Excise Tax Proclamation Page 2011
f",-hlt,.11:1"h""'''~ 11\ litIli

PROCLAMATION NO. 307/2002

"'''~ eII'I'Crf1/Iiif1~
f ",-h..,,e.1I :1"h" "'''~ EXCISE TAX PROCLAMATION
WHEREAS, to improve government revenue it has
foP''''P':''' 10. hIP/lt1..., O"",cc',(o f"'oPlffio lJ:I'''~
become necessary to impose excise tax payable on selected
",e. fIP/9"l:F IDQ.1.""~ htt:A 1I''i f"'l.hLA f",-h..,,e.1I :1"h"
oPlI}A "'I1Lf\1. If'i I1h"'1;1 goods;
WHEREAS, it is believed that this tax should be
,e.O :1"h" '~'(P:" ~'-'to-r oPlPl:1"ce OoP(J''i''TtD-
imposed on luxury goods and basic goods which are demand
9"h',:" f101 tt:I\o):1"T(J)onIP/,e.+,,, ":I'''~ ",e. ~1-'tIl}A inelastic;
IP/~l'" "'10. oPlI')' "h:1"oP~n:"1
WHEREAS, it is believed that imposing the tax on
:1"h(to '..,l1l.,.(U1-1 m.'i" n"'l.""~ ~ 'i" fIP/..,n &-~..,C goods that are hazardous to health and which are cause to
n"'l.f"h:"lt- ":I',,'f ",. oPlI}lt-"'m:l'+00-1 noP+~" l1~ social problems will reduce the consumption thereof;
"'".,." 1\" "h "'l.'i l tD-l NOW, THEREFORE, in accordance with Article 55(1)
nih1 oP1"'P'1: ""+1\ ~~ (li) ~'i" (Ili) oPlPl.,"" and (11) of the Constitution, it is hereby proclaim~d as
f"'l.h.,.htD- ;t"tD-~A II follows.
htt:A ""~ SECTION 1
m~I\" General

li' "'~C c"" 1. Short Tide

,e.O "'''~ "f",-hlt"11 :1"h" "'''~ eII'I'C rf1/Iiifj~" This Proclamation may be cited as the "Excise Tax
.,.111\- "-10+11 "~"AII ProclamationNo. 307/2002."
I' :"C=\"I 2. Definitions
':I'lt- "'11111"''' :"C1-9" ~1-'tltmtD- t}I\"Lh1 n".,.+c In this Proclamation, unless the context otherwise
nflO "'''~ CD-"'I'1 requires:

f1~ CP;J ~,?t-r ,?H.II} ;r..".<Jl. it1f.li

.
U mt Price
4.85
Negarit G.P.O.Box 80,001
 1~ gitil J..1..t-A ~?~T ?ILtIJ 4:'1'C?)' ;1-,.,..,/" ?)'14" Iiln?; 'H". Federal Negarit Gazeta - No. 20 31" December.2002-Page 2012

Ii' "(tm-" DIIi\T DIICj:fm-?" f1-~'J'C' (tm- OJf.?" fl:it"l 1)"person" means a physical or juridical person;
f(tm-H' OD11T f1-(tmm- ~t}A ~m-; 2)"Importer" means any person who imports goods
I' "M1ODIJJ." DIIi\T flltU ~'P~ fh.tJPff.1I ;f"tJil into the country;
f1-ll)i\I1:fm-'} /):1'9'":f OJf.~1C fDt!il111 (tm- ~m-; 3) "Body" means any company, registered partnership,
C. "~C~T" DIIi\T '}"l~ JPt,. fDt!t}'l.~ DII'iTOJ.?" entity formed under foreign law resembling a com-
h-11')! OJf.?" f1-ODH1fl f7iCtJCj DII'"rflC OJf.?"
pany or registered partnership, or any public enter-
hh-I1'}! OJf.?" h1'ODH1fl f7iCtJCj DII'"rflC ;1C
prise or public financical agency that carries out
+tm"'''f.' flf~e; O(J)<o"1l' ~1C :it"l ODlPl-r f1-**OD
business activities including body of persons cor-
~C~T OJf.,tp' DIICj:fm-cr fOD'}"'JPT fADII-r JP~
porate or unicorporated wh,ethercreated or recog-
~C~T W1-?" f1'}H11 ~C~-r c'1.1f,}: flm-"1I' ~1C
!i\'> ~t}A floOOJhA flh.Tf'A-! m-il'J'f,}"l~JP&.
nized under a law in force in Ethiopia, or elsewhere.
fDt!t}'l.f.m-'} OJh.A hCj O'}.y. flDtIP&.fl-r flh.-r and any foreign. body's business '~gent doing
business in Ethiopia on behaif of the pr~pcipal.
. f'k! cpf.,?";fl~I\ ~1C :it"l f1-ODlPl1- OJf.?" /)m-:"Cj
!11 f1..1f'}9,"qf,.If,}?" h,}f. ~C~T fDt'}., ,.il'} 4) "Pure Alcohol'~ me~ns Alcotlol of purity of 80
f.,aJ.cr t,.IM . degrees or more;
. "'}8-U }}AI1A" "7i\T 'J't,.-I: (to'/'}! .It"l~ OJf.?" 5) "Alcohol" means Ethyl Alc()hol;
blLti rfli\m flf~ ~AI1A DIIi\-r ~m-; 6) "Tax Authority" means the Fed~ral Inland'Revenue
~. "~A,I1A" DIIAT~(I.~ ~Af1A ~m-; Authority and the tax authorities of the Regional
}. "f;f"tJil I1i\JPAll}'}" DIIi\T f&..Yot,.A ~1C ID-il'J'
States and City Administrations;
1f1.. I1i\JPAll}'} 'PlJ ODjo.T hCj fl1-i\!~ f~1~i: 7) "Bonded Warehouse" means the building or place
tJlf:i\-":f f 1-**00- :"C'}fiJ, If: ~ j o.-Ai h,} .ltv--?"
destined for storage' of specified goods before the tax
tftJAlt- h~ fh1-DII ODil1-~~C'":f f1f1. (t11...f1.
is paid, secured in accordance .with requirements of
~t}I\T e;:fm-;
the Tax Authority;
:L' "f/):1' OD;1H')" ""Ii\T f;f"tJ(}. I1i\JPAll}'} flD'J.~
8) "Cost of Production" mean.s direct labour and raw
:"f.m- ODlPl~ fDtmfl:"Cj ;f"tJil fA1-h~i\flT /):1'
fDt "'OD'J'fl T 0. T OJf.?" P'If:&. ~m-; material cost incurred in the production process, cost
:S. ~'fDII?"l:r .OJIJJ." DIIi\T i\?"CT 1-"lI1C fl.,.'J':1' of indirect inputs and overhead costs, but does not
fDtOJ.lt- 'J'&./):1'9'":fe;f,.AflT 'P;1: "''J'1-~ !AIf~ include depreciation costs of machineries;
"l11 Ct.y.":f OJQ;l. h Cj Mi C 't~ OJIJJ. c'1.1f,}: i\ ""/?" l:r 9) "Taxpay~r" means a person liable to pay Excise
ODPf~!9'":f fD?;f"(tflaJ."} fhC~Cj :,.e;7i ~f.aJ. Tax;
.
?"C?"I' 10) "Ministry" and "Minister" means the Ministry
U' ";f"tJil h4-f." DIIi\T fh.tJPff.1I :J'tJil h4-f. ~m-; and Minister of Finance and Economic Develop-
!. "o'Ull-tC" hCj "Dt~il-rC" DIIi\T h'}f.:"f.?" ment, respectively,;
1-h+lt- f1'}H11e; h.f1'fDt ADIIT Dt~il-l:C he;
.
3. Scope
Dt~il-rC ~m-:: This Proclamation applies on goods listed in the
c. f~'P:( +~~Dt~T
Schedule attached to this Proclamation..
f.,U ~'P~ 1-~,Dt fDt(f~m- hltU ~'P~ ;JC fl+!!Hm-
lP'}mlY fl1-HlH~ /):1'9'":f I\f. ~m-:: SECTJON 2
tJlf:A V--i\T
fh.tJPff.1I;f"tJil DIIilh~ AtJ
The Rate, Base and Payment of Excise Tax
4. Rate of Excise Tax
fil"--I: ODlPlT: ~h4-~A '
. fh.tJPff.,1I ;f"tJil DIIilh~! AtJ The Excise tax shall be paid on goods mentioned under
hH.U MP~ PC fl1-!!Hm- lP'}mlY m-il'J' f1-HlH~T the Schedule attached to this Proclamation:
.
/):1'9'":f:- (a) When imported;
U} hm-"1I' OJf.U1Cm-il'J' (t1f1': (b) When produced locally at the rate prescribed in the
.i\) O~1C m-h'J' (tODl-l:: Schedule.
fl~Jml1f fl+ODi\h1-m- fDllilh~! AtJ ODlPl-r
fh.hPff.1I :1'tJil f.h~AI1T'PA:: 5. Base of Computation of Excise Tax
li' f h.tJ Pff.,11 :1'tJ il il ~-r OD IP l:'- 1) in respect of goods produced locally, the cost of
;f"tJ(}. fDt",I\ flT 'P;J i
production;
Ii' I1h 1 C m-il'J' i\ 1-ODl -I:-r /):1'9'":f fDII?"l:r OJlJ.1.t1"i
2) in respect of goods imported, cost, insurance and
I' lDf.h1C m-il'J' i\Dt1f1' /):1'9'":fi f/):1'm- 'P;1:
freight (C.LF.);
'~!,fOb~'"r,) ~l{1'} hCj fDII~~"" OJIJJ. (t'~f.'h.If:)
f.1fe;A::
}. fh.tJPff.1I ;f"tJil~h4-~A
6. Payment of Excise Tax

Ii' fh.tJPff.1I ;f"tJil:
U) flh1C m-il'J' flDtODl-l: /):1'9'":f I\f. fl~?" &.~i
i\) OJf.~1C m-il'J' flDt1f1' /):1'9'":f I\f. fl~il
ODIJJ.m- flltU ~'}.,.?\ ,}(}oil ~'}.,.~ (I) fl1-OJ
fl~m- 1..", m-il'J' f.,h~I\A::
1) The Excise tax shall be paid within the time
prescribed under Sub-Article (2) of this Article.
(a) in respect of goods produced locally, by the
producer;
(b) in respect of goods imported, by the importer.
1;r Ii'f.Ir t..1..t./A ";1&"" ;111.1IJck'l'C ?; :J-"I"IP' ?;I 4>1 IUn?; '}.9". Federal Negarit Gazeta - No. 20 31" December, 2002-Page 2013

I' fh~!~ 1.H.1 2) Time ofPayment:

U) OH.tJ il11>7\1(Hl il11>7\ ~ (l\) 001Pl.:" f'I'M' (a) Unless decided otherwise, as provided for
~"'1~ ilA-f'{)m Oil-f'I>C (l1P1ml.1f f-f'ool\ under Sub--Article 2(b) of this Article, the
hi::" iJ:J>~'f1 excise tax on goods specified under the
Schedule shall be payable.
ji' tDY.il1C f1.1n- ililoo6IJ.~ iJ:J>~~1
1) When imported at the time of clearing the
h"9"~h hAA W''l.!tDllJO:''1.H.= goods from Customs area;
I' Oil1C ~il'r f1.00l.i: h-f'ool.i:(l:" 1>1
2) When produced locally, not later than 30
r.9"r: n~ I>C;:"~()1' fn.hllff.11 ;rhil days from the date of production;
f.h~I\AII
l\) il9"t-.:r: f-f'001.i::"1 iJ:J>~'f f;J'hf1. 1ll\P'
(b) Where the tax payer requests forpermission to
AllJ1 W''l.L''''Y.~ fiJ:J> 00;J111 ~il1' ;J'hil deposit goods produced iu a bonded
warehouse without payment of tax and if the
ltf.h~A l\O'/ill>oo1' ~:J>Y.' fmfl> ~1f.If'1C;
request is approved by the Tax Authority the
f;rhf1. 1ll\P'AllJ19" f.tJ1'" h~I>Y. OILU Lr~;J'
payment of the tax on such goods so deposited
O-f'I>oo m:" iJ:J>~'f I\f. ;rh f1. iJ:J>~:r: h 00 ;J 111
shall be effectd at the time they are being
~ 1 y'tDm tD-'l!~'" f.hl.I\A:: removed from the Bonded warehouse;
ch) f;rhf1. 1ll\P'AllJ1 fil9"t-.:r: fp't-. ~1""il:J>~
(c) If the Tax Authority believes that the activity
fiJ:J> 00;JII1 fo<f.!il~A"~ If'i f1.!"1~
of the tax payer requires a Bonded Warehouse
h1-'ltJ !l\~1 00;JII1 h1-'l!!I:<k9" f.~""Y: may give him permission to establish such
l\;rA:1 fiJ:J> 00 ;JII.,. P' t-.~1 fo<f.oot-.(l:"1 Bonded Warehouse. The conditions under
Lr~;r9" Ooooot! f.tDilC;A:: ill\If'19" f;rhf1. which the Bonded Warehouse operates shall
1ll\~AllJ1 tDh.A 0P'~t-.~ ilA-f'''lC; ttA-f'~ also be laid down by directive to be issued by
llJml. Oil-f'I>C9"19" qf.1:" iJ:J> 000 ;JII1 the Tax Authority. No goods shall therefore be
~il'r 1\0'/ill>oo1' (IJf.9" hoo;J "'" ~ 1-'l (IJllJ deposited in or removed from a Bonded
l\ 0'/ Y: l. '"I J1.f.:F A9":: Warehouse except in the presence and under
(0) il9"t-.:r: -f'''o. flf.,.:"1 f'LIIf-o 0011.,(l'fC; the control of a representative of the
iP'1,.'f ltf.1f f"'l. h1Y.1f'1 (IJf.9" ff(IJ~1 Authority;
f'L IIf-0 00'"1l\ 6liJ.! 1\I>l.0 h 1 Y.1f'I (IJf.9" OILtJ (d) where a producer fails to keep proper accounts
iltp~ O-f'(IJ{)'1~ 1.H. ~il1' ;rhf1.1 !Ah~l\ and records or fails to submit a monthly
~ 1 Y.1f'I tDf.9" ! I>l.(l~ f'L "'1-0 00'"1l\ 65J. declaration or pay the tax within the time limit
09"Coot-. :"hhl\;;: If'i !A-f'''l ~11.1f'1 prescribed in this Proclamation or submits a
;rhf1. hilh.h~A Y:l.il f;rhf1. 1ll\P'AllJ1 declaration which upon investigation is found
il 9" t-:r: 0'/1;;: ~19" iJ:J> hO'/9" l.:F ~ (l;f- incorrect the Tax Authority shall be em-
(IJf.9" hiJ:J>~ 00 ;JII1 (J}4il1'~ 1~!(IJllJ l\ooh powered to forbid the producer to remove any
AhA f.'fl\A:1 good from the place of production or Bonded
fn.hllff.1f ;rhil ilwlt{)1 Warehouse.
l'
b'
~ f;f-hf1. 1ll\P'AllJ1 fil9"t-.:r: f'LIIf-o 001f1(l'fC; 7. Assessment of the Excise Tax
1P'1Jlc'f Oo<f.11100 !tfT~1C; il9"t-.:r: OH.tJ il 'P~ 1) If the Tax Authority accepts that the books and
il11>7\ ~ (I\) O-f'OOl\h-f'~ 001Pl.:" fo<f.!I>C(l~ records maintained by the producer are properly
fftD~ f'L"'111 oo'"ll\6liJ. :"hhA 001f.,.1 f1.I>OA kept and that the monthly declaration submitted by
0 'l. 1If-o00'"1l\ 66J.~ 0-f'00 l\ h-f'~ 00 IP l.:" f -f'h~l\ ~ him, pursuant to Article 8(d) of this Proclamation is
;rhil :"hhl\;;: If'i f.~mt-.A:: correct the tax paid in accordance with the monthly
f;rhf1. fll\P'AllJ1 f;rhil h...~1 'Llt-o hool.ool.
declaration shall be considered accurate.
I'
O~I\ ;rhil h...~ l\.h~A fo<f.1f1~1 ;rhil illt1(1 2) If, after review by the Tax Authority, it appears that
!il;rtDI> 001f.,.1 f1.l.{)O:" h11.11''1 -f'QJ.O'/t f;rhil a person has understated his tax obligation, the
~1If~ f.{)llJA:: Authority shall issue an additional assessment.
[. f;rhf1. fll\P'AllJ1 f{)m~ f;rhil ~lt~ (lO'/il;r 3) The assessment made shall be prepared in an
assessment notification and be delivered to the tax
tD<t! -f'tf;J~-f c\;f-hil h...~ f.I\ilA:: f~lt~ O'/il;f-
payer. Delivery of the assessment notification shall
OJ<t! fOOl\ h- il~~1.9" 010. '"I-oC il 'P~ (l-f'{)m
be made in accordance with the provisions of
Y:1 ;J1.?J'f 001Pl.:" f.~1.O'/A:: Income Tax Proclamation.
. f;f-hf1. fll\P'AllJ1 01o-il il11>7\ (I) 001Pl.:" 4) If the Authority makes an additional assessment
-f'QJ.O'/t f;rhil ~lt~ fc'tm ~C; f;f-hil ~lt~ O'/il;r under Sub-Artcle (2) and within 30 days of the
W<t! f1.l.{)~ ()~ O'/il;rw<t!~ 01.l.{)~ (l~ 1>1 notice and demand, the person assessed does not
~il'r h1-'lh~A f-f'mfl>~1 -f'QJ.li7t ;f-hil pay the additional assessment or appeal the assess-
!Ah~l\ Wf.9" O~lt~~ I\f. ""&.;r ill\~ Oil11>7\ ment as provided under Article 18, the person is in
I~ 001Pl.:" f.'"IfI~ !I\I>l.O h11.1f'1 1' f';;: '1~:: default.
~. OILtJ iltp~ il11>7\1; 001Pl.:" ;f-hil h...~ ;rhf1.1 5) Ifthe Tax Authority fails to assess the tax and notify
ilil;r~'" hhLl\O:" fOr.:,. qoo:,. 00aJ.l.i'f il1il-f the tax payer of the amount still due withn five years
O~ qoo:" 1.H. lD-il'r f;rh(\- 1ll\P'AllJ1 f;f-hf1.1 from the date of declaration and payment of the tax
Ah tDil'i I>t 'Lltl1 00'i~1 ill\il;rOJI> f-f'h~l\~ by the tax.payer in accordance with Article 6 of this
;f-hil O<t'i fooQJ,l.i'f f.1fC;A:: 1f'i9" ;rhil h...~ Proclamation, the tax so paid shall be final and
coacisive. In case, where the taxpayer has not
.,0.~1 !I\il;f-OJI> tDf.9" f-f'~Ol.Ol. f10. O'/il;f-
declared his income or has submitted a fraudulent
tD<t! !I>l.O h11.1f'1 f;f-hf1. 'fll\P'AllJ1 OO'/C;
declaration, nG time limit provided in any other law
TlD-9" l\.I\ ih'"l f-f'1.'111~ f.C;J It!'"I1.~ ;rhf1.1 shall bar the assessment of the tax by the Tax
00'/c;:flD-9" 1.H. ootD{)1 f.'fl\A:: Authority.
1~ litI!! 1..1..~A. ~.??..,. .?JLIIJ4I1'C 1) ;t-'"rUfP' 1)~ +1 Iiinli q.9". Federal Negarit Gazeta - No. 20 31" December,2002-Page 2014

htt:A Y'iI~ SECTION 3

f;rhf\- J\(a'l(a-o J\-t~~9" Collection Enforcement
~. f;rhil h4.~ ~1o;r?J:f 8. Obligations of the Tax Payer
OlUJ J\ 'P~ 01\.1\-:f ",+".:f h.,.. m+ f\-~ ..,$',.;r?J:f
In addition to the obligations specified in the other
O.,..Q;1.IM",1i:flD-9" ;rhil h4.f. I provisions of this Proclamation, every tax payer
u) J\..,I1-o 'It\lD- f"lt-o "ff1l FCI}~1i f ;rhil 'lI\F shall :
All)). 0"7.-t:"~lD- I}f.'1"" f"lt-o OOJ''''-o~11i ~;1k (a) maintain books of accounts and supporting.
(a'1P.:f1 f.~IfA:: documents in accordance with proper accoun-
1\) O;rhil 'l1\, AII)). O"7.(amlD- :,.~ ting principles and in a manner acceptable to the
"f. ;rhf\-1 Tax Authority;
0"7.1'l t\oo(a-o(a-o J\iI-t"1. f"7.(nCD-1 ool)f (b) submit every 30 days to the Tax Authority, in a
f"7.fltf. 00..,t\65J,. IfPA..y. Ofc!) +). t\:rhil 'lI\F form which shall be supplied by said Authority,
All)). f+C'lA:: a declaration containing such information as
ch) OILU J\'P~ J\1+~ it 1o-il J\1+~ (r) OOJPl'''' may be necessary for proper collection of the
f;rhil I1I\P'AII)). f"7.mf.+w.1 f.-t~"'A:: tax.
(0) f;rhil 'It\P'AII)). CDh.A OFt. (l;rw. 00011 ~ (c) comply fully with requirements of the inspec-
ilt\;rhil J\(a'l(a-o t\"7.fS'.C1lD- ~'1"rC J\iI-t"1. tion of his premises by the delegate of the Tax
Authority in accordance with Sub - Article 3 of
frf'1lD-1 IJcI\- J\ ":LA..y.f+C'lAu
Article 9 of this Proclamation.
lP) fP't.lD-1 I}f.'1""1i fP't.lD-1 J\~t.?j h1.ct1Jc9"
(d) comply fully with the requirements of the
P't-lD-1 fI.~9"C CDWr fl.f!l:C1' 1Jc~;rlD-1 1\'lt\F inspection of his premises by the delegate of the
A 11)).m.ctflD-). f ltlD-fl' A II Tax Authority;
l) P'6-lD-1 fl.f!l:C1' f"7.-tt\"'0~1 ;rhil Oon-I\- (e) immediately communicate to the T~x Authority
P't.lD-1 l1!1:lm Oc!)+Ii~ w.il1' J\mli~ f.htt:"A:: the type and address as well as the commen-
cement and termination date of his business;
it. f;rhf\- 'l1\P'AII)1 , A1I)1 (f) pay in full the tax due within 30 days from the
OILU J\'P~ t\.1\-:f J\1+".:f h""m+fa.~ 0""Q.1,111/~ date of termination where such business is
f ;rh fa. 11I\F A11)1 f"7. h.,..t\lD- FA 11)1Ii ., , 'l C teIDlinated.
f.'i l 'PAI 9. Power of the Tax Authority
ii' f.tJ1 J\'P~ OFt- "f. f"''PA hli f"'iI-t~9" ;}"k'1~ In addition to the powers specified in the other provisions
f;rhfa. 11t\P'AII)1 f.rfliA:1 of this Proclamation the Tax Authority shall have the
;rhil h4.~1 CDf.9"f"lt-o 001l1(l:f1 hli (a'1P.:f1 following powers and duties:
I' 1) The implementation and enforcement of this
CDf.9"ool)f1 t\"'''''T f"7.:f1\lD-1 CDf.9"h'1H.U)' Proclamationshall be the duty of the Tax Authority;
foomO:" ;}"k'1"" f""(amlD-'} ""~lD-'9" f;rhil 2) Requiring the person or any employee who has
h4.~1 ""+lI)t 0J\00=f f;rhfa. 'lI\FAII)1 fFt. access to or custody of any information. records or
(al}..y.:f hli O~/o.1: ",,":t;..y.t\"7.+Cn-t\"" I\"".c;~ books of account to produce the same and to attend
J\..,11-0f":folD- 1'f-l: 9':f 00A iI h 1.ct(a1'1i f.,..'l I\- during normal office hours at any reasonably
""''/"' (a'1p':f h1..v+c-o t\"'~l"'f convenient tax office and answer any questions
relating thereto;
r' U) f9"CT """''lC CDf.,/",f7if~ P't- ill\oot}Z.l;. 3) Enter business premises or stores of the tax payer or
CDf.,/", t\;rhfa. J\h4.-tA f"7.6c; ",ill)f to any place suspected to be storage of the products,
ilt\oo'i~ "-mt-mC CDf.'/"'f.U J\'P~ CDf.9" inspect, collect information and take appropriate
OJ\'P~ OOlPl"" f"7.CDm-T ~1(l:f hli oooo~ measures:
f9'":(. 0"7.111 oohOt-:flD-1 t\",l;111' O:J:hil (a) during the regular working hours of the tax
h4.' IID~O~ fP't- (al}..y.:ff payer where it suspects that production or sale
1\) f.U'} J\'P~ CDf.'/"'OJ\'P:( OOfPlT f"7.CDm-T1 of goods is carried on or there is information
that may be necessary for the prOper assessment
~ 1 (1:f1iIIDIID~f9':f 000"""" tt: '1'4...,.f.,..-tRoo
of the tax, and to ensure the observance of this
t\OOrf)' fl.mt-mC 0""~lD-9" 1.H.f Proclamation and Regulations issued for the
CD~;rhil h4.~ f P't- (l;r CDf.,/",f/Jfl' 00;1"' implementation of this Proclamation;
CDf.'/"' '/"' Cof: f.1:t; O;r A .,..-0 I\- CD~ "7.100""lD- (b) at any time where it suspects that an offense
",Ii :fm-'/"' , tt:t- f lID'"'l Tli 1Jc~;r?J:f1 resulting from the violation of the provisions of
f"'II)t.Tf ool)f?J:f1 foo(a-o(aoO """n.w.19" this Proclamation or regulations issued for the
hC'/"')f fODlD-(a~ implementation of the Proclamation has been
committed.
g. OILtJJ\'P~ ODlPlT t\.h-tA f"7.1'llD-1 ;r)1i1 t\;rhil
4) Notify the tax payer the additional tax to be paid in
hof.' fP7i1;rCD:"I
accordance with this Proclamation;
~. ID~J\"C f"t.,n- ilfl'9':f1 O"7.ODt\hTI 5) as regards goods imported:
U) CDS'.OD1"'P'T f.,..'/"'~h hAA h.,n-OT +1 (a) sell such goods where the tax in respect of them
J\1il.,.hilh iI~"'T CDC~lil ;rhfa. t}A.,..h-tt\ is not paid within six months from the day of
/Jfl' 9'=li1 f l1I\ifl' CD
f.'/"' /Jfl'?J=Iif"7. if. rf'i deposit within the premises of government
0"
fI.f"~ 0",1i:flD-'/"' 1.11.h1.ct7i'm- fODCD(a1I warehouse, or in the case of perishable goods,
decide on their sale at any time it thinks fit;
1K" !{1LUi J..1..&-1A ";J~-r ;JUII)~'I'C 1j ;1'1VtP' 1j!{+, Iit1G 'H". Federal -Negarit Gazeta - No. 20 31stDecember, 2002-Page 2015

t\) il. hLA fD? 1 11lD- ;t-h IIli t\.f\o";f lD(J;}JP";f (b) transfer to the Government treasury the
h"''''~f1- 0:\1\ "'t-k 11"11-1 t\oP"'OA oPlI-r balance, if any, remaining after the deduction of
f t\ lD- () lD- iJ:J>lD- h.,. 11m 0"" .,.1 h 111.,. 0 ~ the tax and other expenses, provided, however,
~oP"" 1.H. lD-ll'l' 'I' f<l: Itf"'ClIli oPlI1: that it shall pay the same person entitled thereto
Itl;J1'1' .,.t-klD- 11"11 t\f1t\oPlI1: h 1.1toPt\ where he claims it within five years from the
llt\-r fOlJf:l..,: date of the sale and where his claims are
i. OIJ";J~ 0."" f:C~"" f4.f.li111 "'*9" lDf.9" provided.
0IJ1~lD-9" f&..lot-A lDf.9" fhAA oP1..,F"" 6) Requiring any person including a municipality,
oPF~f 0."" QJ.9"C' 0IJ1~lD-9" ()lD- llt\;t-hll h<t-~ body, financial institution, department or agency of
fD?flD-"'lD-1 oPl~ lDf.9" f F t- h 1,pll:J>11.1'C"HC Federal or Regional Government to disclose par-
h1.1t1A~ t\OIJf:l.., f.";fl\A:: ticulars of any information or transactions.

I. ;t-hllt\oP()lI()lIUlI-rllt\oPf"H 10. Seizure ofProperty to Collect Tax

j;. 01o-11 h1"'~ () f'''f.~11lD- h1f."'m(H> I1'If 1) Subject to Sub-Article (4), if any person liable to pay
OIJliTlD-9" OH.U h'P~ f"'flJt\lD- ;t-hll fD?Lt\..,O-r any tax imposed by this Proclamation is in default
()lD- Oh1"'~ 1: 1o-11 h1"'~ lDf.9" Oh1"'~ It under Article 7, Sub-Article (4) or Article 18,
1o-11 h1"'~ ({) 0"'f.~11lD- oPlPl-r 'I'<t-"'~ I1'If Sub-Article (2), it shall be lawful for the Authority to
f"'11 h1f.1f~ f;t-hf1- f1t\FAflJ1 ftlU1 ;t-hll collect such tax (and such further amount as shall be
h4.f. UlI"" OoPf"H t\D?Lt\..,O"" ;t-hll hli 111l1:1 sufficient to cover the expenses of the seizure) by
t\ oP f"H f.,. f.l 1 lD-1 .,. QJ.OIJ~ lDlJJ. t\ oP 11 L 1 seizing any property belonging to such person.
h1.1tlD-At\OIJf:l..,~;J'f FAflJ1 f.lfl'PA:: 2) For purposes of this Section, the term "seizure"
I. t\H.U htt:A hL~~9" "oP f"H" OOlJliTlD-9" oP11f: includes seizure by any means, as well as collection
oPf"H1 h1.1tu-9" fh.hUff."H ;t-hll fD?Lt\..,O:" ()lD- from a person who owes money or property to the
flf~ 11"lIlDf.9" 111l"" Oh~ hD?1~ ()lD- ;t-hll person liable for VAT. Except as provided in
oP()1I()1I1 f.QJ.9"t-A:: 01o-11 h1"'~ (E) hli (i)
Sub-Articles (3) and (6), a seizure shal extend only
0"'~1llD- oPlPl"" I1AIf~ Oll.,..,.C oPf"H fD?:rt\lD- to property possessed and obligations existing at the
foP fn- ""iJtf"H O"'()mO-r 1.H. Of.tf;t- FC fD? 1~
time the seizure is made. The Authority may request
111l"" hli foP fn- .,...,I1C 0D?hlilD10-r 1.H. tn.y. a police officer to be present during the seizure.
ft\ ..,1o;t-1 O"'oPt\h.,. 1I:r ~lD-:: f;t-h()' f1t\F
Where the Authority seizes any property as provided
AflJ1 f;t-hll h4.~1 UlI"" 0D?f."H0-r 1.H. fTil.ll
hereinabove, it shall have the right to sell the seized
lPt-'f-r hl1A h1.1t1~ il.mf.,p f.";fl\A:: f1t\FAfIJ).
gods at public auction or in any other manner
hH.U Ol\f. O"'oPt\h"'lD- oPlPl-r UlI1:1 hf"O-r
.,.1 h 111.,. hD?~mC hI .,.li"" 1.H. 0:\1\ Otht- ~ approved by the Authority not less than 10 days after
lDf.9" OI1t\FAfIJ). O.,.L"'f. OOlJliTlD-9" t\.1\ "10
the seizure, except that when the goods seized are
perishable, the Authority can sell the goods after any
ff"lD-1 111l"" oP1I'I' f.";fl\A:: Iflf9" 111l1:
fD?Ol\(i hlf~ f111l1:1 I1UCf. h"'9"-r lD-ll'l' reasonable period having regard to the nature of the
00lJil1 11"" "'1 n. oP IIf\o 0 D?;t- f lD- 1. H. il. 11 mlD- goods.
f.";fl\A:: 3) Whenever any property on which iieizure had been
E. OIJliTlD-9" f.,. f" 111l"" t\oP fn- 9"h1 f"" flf~lD-1 made is not sufficient to satisfy the claim for which
f;t-hll iJ.I; t\oP1IL1 oct "f.1f1 f"'l h1f.1f~: seizure is made, the Authority may, thereafter and as
f;t-hf1- I1t\FAflJ1 h;t-hll h<t-~ I\f. fD?Lt\1lD- may be necessary, proceed to seize other property
f;t-hll iJ.I; hli hH.U ;JC f"'ffn- A~ A~ lDlJJ.sP";f liable to seizure of the person against whom the
.,.htt:t\lD- hllhD?mli"'~ f:lll f;t-hll iJ.I;lD-fD?Lt\ claim exists until the amount due from such person,
..,0""1 ()lD- t\.f\o";f UlI.,.";f oPf"H f.";fl\A== together with all expenses, is fully paid.
. hH.U Ol\f. 01o-11 h1"'~ (j;) O.,.f. ~11lD- oPlPl""
4) Seizure may be made under Sub-Article (1) on
I1A"'hLt\ f;t-hll iJ.I; 9"h1f"" 111l-r oP;"H
fD?:rt\lD- f;t-hf1- I1t\FAflJ1 UlI1:1 foP f"H U"lI property of any person in default with respect to any
h1.1;t\lD- hll.,.f:IJP t\;t-hll h4.~ O~m.tt: 1111;t-lD"'lD- unpaid tax only after the Authority has notified such
0:\1\ f.lfliA:: OH.U ~f.~"" fD?()mlD- OIJll;t-lDctf person in writing of the intention to make such
UlI1: hoP fn- he!) .,.1 Ok"" t\;t-hll h<t-~ il.f.C()lD- seizure. The notice shall be delivered not less than
f.1I1A:: thirty (30) days before the day of the seizure.
~. f;t-hf1- I1t\FAflJ1 f;t-hf1-1 h()f1()l1 fD?ff.li,ptt: 5) If the Authority makes a finding that the collection of
J-~;t- oPlf';'1 f"'l.l; h1f.1f~ 01o-11 h1"'~ (j;) the tax is in jeopardy, demand for immediate
f"'oPt\h"'lD- fc!J .,.1 f1.H. 1f.1I hli 01o-11 h1"'~ payment of such tax may be made by the Authority
() f"'oPt\h"'lD- fc!J .,.1 f1.H. 1f.1I "f.mO,p ;t-h()'
and, on failure or refusal to pay the tax, collection
lD.ltflD-). h1.1thLA t\OIJf:l.., 'l'f<l: h"'lOli ;t-hll
thereof by seizure shall be lawful without regard to
h<t-~ t\oPhLA Uf.~ I1AIf~ 111l""1 OoPf"H the 3O-day period provided in Sub-Article (1) and
;t-hll foP()lI()11- hL~~9" ~;J'f f.lfliA::
the 3O-day provided in Sub-Article (4).
i. OIJliTlD-9" 111l"" f"'f" lDf.9" h1JLf"H f;t-()O
hlf~ llt\H.u-111l"" OIJlll~ fD?1f1lDf.9" oP..,t\65j. 6) If a seizure has been made or is about to be made on
()~f: lD~"" oP"H111 Oh~ fD?1~ lDf.9" any property, any person having custody or control
ff"
O~'I''I'';' FC fA OIJliTOJ-9"()lD-O;t-hf1- I1AFAtlJ1 of any books or records containing evidence or
() ~~ 1 lD f.9" oP"H111-1 AOIJIII statements relating to the property subject to seizure
'I' f<l: It "'C-nt\:"
~ ~..,. 0IJ,p l-a "'''
0"":: shall, on demand of the Authority, exhibit such
books or records to the Authority.
 n' ~i'i.n; &"J'..MiI. ";J/'-} ;J/J.nJ <I:'I'C ?! ;J'..,..,r ?!~
.,,-) :OH~i?;'HI". Federal Negarit Gazeta - No. 20 31 ,I December, 2002-Page 2016

:z. O~Cf.; (t-)- :'-01'1' f-HHllWJ.'.9u Oh.{,~~~ IIJ.'.YI\ 7) Any person in possession of (or obligated with
WJ.'.~ OCPfl:'-lJ'f-f-YII ilAln Ofl-f-</,C u'llJ':':W-~ respect to) property subject to seizure on which a
O;J-hfl ~h,}Y:'- fi-YH '}-nl-} nh~: fU'J_1~ lDJ.'.9u seizure has been made shall, on the demand of the
I\;J-hfl h4.f- u'llJ':t:W-9u ..,!!o;J- Yl\tH- (}W- f:J-h()' Authority, surrender such property (or discharge
IMP' A II}'} (}.mJ.'.<f'w- f YtlW-') u-tH- I\;J-h ()- tll\P' such obligation) to the Authority, except such part of
All}'} fU'Jfllh-n lDJ.'.9u Yl\tH--} "'Yo;J' fOV6_~9u
the property as is, at the time of such demand, subject
;')116.'t-)- hl\tH-::
to a prior secured claim of creditors and subject to an
r;' u'l~':':W-9u (}m- f:J-h()' tll\P'Ann (}_mJ.'.'l'co- attachment or execution under any judicial process.
h')Y.;'} f-'-YtI '}-nl-} l\U'JflLh-O 6_:J>Y,7,:".elf'} 8) Any person who fails or refuses to surrender any
f</'l h'}f.tf't O-f-YtlW- '}-nl-)- ovm'} n..,A -hn_r'~
property subject to seizure, on demand of the
J.'.tflJ'A:: tflj~ i-mytH; I\'}-nli: OVY1' 9utJ1Y-}
Authority, shall be personally liabk. to the govern-
htf'tw- f;J-hfl o~ ovm'} (n;J-h()' o~ IIJ.'. fU'J_;J-(}
nm-'} W{J;1.hlJ' wI\Y: lJJ,~C') I\.YA~ hJ.'.-;'j-A9u:: ment in a sum equal to the value of the property not
so surrendered, but not exceeding the amount of tax
j!' n'}trfl h'}</'''' (t) h-f-ovl\h-f-m- f..,A -t-tnYt't-)-
for the collection of which seizure has been made
ni-lJJ,U'J6 '}.nl-f:'} fYtlm- (}w- ')-nl-f:,} l\U'Jfllh-n
(together with costs and interest on such sum)
.{,:t'Y-~ YAtf'tm- Yl\nt ~h'}Y-)- htf't n'}o-fl
(:I:) ODlPl:'- fU'J_'{'1\1W-'} f1'}IHl ODm'} ..Ii 9) In addition to the personal liability imposed by
h'}</''''
TC(}'}-)- (H-lJJ,U'J6 h,})).h~A J.'.Y-l;JA:: Sub-Article (8), if the failure or refusal to surrender
is without reasonable cause, such person shall be
I- ntw h'}</'''' ODlPl:" nJ.'.I':}-m- P'C Yl\w-1 '}-nL-)-
liable for an additional charge equal to fifty percent
Yfllhn wJ.'.~ n:t"hfl h4.V- fU'J..{,I\..,n-)-1 1'}tI-n
h;J-h(}' I1I\P'AII}'} n-f-mf</'m- ODlPl:,. 1fl. _rY,l1 (50%) of the amount recoverable under Sub-Article
U'JlJ'rw-~ (}m- ilfllhnm- ').ol-} WJ.'.~ 1 fl. tlf.l1m- (8)
1'} 11.0 ;JC n-f'Y YII f:t"h fl .., !!o;J'm-'} tl A-"lDlI}m- 10) Any person in possession of property who surren-
;t'hfl h4.J.'. Wf-~ U'JlJ':t:m-~ 1\.11(}m- hU'J.6_I\..,n-) ders or makes payment in accordance with this
o~ WJ.'.~ ill\n:" ..,!!o;J- 't., J.'.tflJ'A:: Article shall be discharged from any obligation or
liability to the delinquent person or to any other
II!- OU.o-} IIJ.'.fU'J.</'c-n f</'f.~:"":'- OD-n:,. 'l'Y<I: person arising from such surrender or payment.
-
I! tpflT~- f"'(}lI}rm- f I\.I\"~ hn~69'~ fq. Y:U'J.Y
11. Preferential Claim to Assets
OD.o:" h'}f."'mn</, tflj ntw htp~ ODlPl:" ;J'hfl
-t-h4.J.'. hU'J.tf'}OT </''} h'}fl-Y. -Hl~I\" hflh 1) From the date on which tax becomes due and payable
hl\</'O:" 'lit. ~lfl ;J-hfl fODh'{'A ..,!!o:}- tll\tH- under this Proclamation, subject to the prior secured
(}m- U.o T IIJ.'. f:t"h (). 111\P'A II}') f</' y-~-)-.,:" claims of credtiors, the Authority has a preferential
OD.oT J.'.ljltpA:: claim upon the assets of the person liable to pay the
!:- U'JlJ'rm-~ (}m- ;J-hfl fODh'{'A "'!!o:t"m-') I1I\OD tax until the tax is paid.
WII}T 'l'4.-t-~ tflj f-t-17 h'}f.tf't f:}-tJ(}. IMp' 2) Where a person is in default of paying tax, the
All}'} n'l'4.T ~h'}Y:" YA-t-h'{'I\m-'} ;t-hfl hlJ' Authority may, by notice in writing, inform that
;J-h{}.'} l\U'Jflh'{'A fU'J.Y-l1m- h'}q.fl:J>ib fU'J_Yflh person of the Authority's intention to apply to the
TI\m-'} WlJ.1.U'Jflh6_A h'})).:FA f:t"hfl h~ fU'J.'{'1\ Registering Authority to register a security interest in
..,OT (}m- U.oT ntpfl:"lJ' i'J.'." h'})).~J.'. ')-nl-f:,}
any asset, which is owned, by that person, to cover
I\ODH1nm- hilA f6J1.~ TOII1' fU'J.(}'I' ODtf't-,} any unpaid tax in default, together with any expense
fU'J.1A'" U'Jflm'}</'tY I\+ODtl1nm- (}m- J.'.(}II}A:: incurred in recovery proceedings.
E- n'}trfl h'}</'''' (ID f+1I\Om- U'Jflm'}</'tY fY,l(}m-
3) If the person on whom a notice has been served under
:J-hfl h4.J.'. U'Jflm'}</'tym- nY,l(}m- ncn </'') m-fl'l'
;J-h{}',} YAh'{'l\ Sub-Article (2) fails to pay the amount specified in
h'}f.tf't f;J-h{}' "tll\P'AII}'}
1\'}.olT OD1I;Jf1.m- I1I\P'AII}'} f"'ODII1nm- (}m- the notice within 30 days after the date of service of
U.oT I1A+h.{,l\m- f;J-hfl o~ ODm') Otpfl:"lJ' +J.'." the notice, the Authority may, by notice in writing,
h'})).~J.'. TO'l1l J.'.(}II}A:: direct the Registering Authority that the asset, to the
Q- n'}trfl h1</'''' (E)ODlPlT f;J'h{}'I1I\P'AII}'} extent of the defaulter's interest therein, shall be the
;J-hfl
fU'J..{,I\..,nT (}m- U.o:" OtpflTlJ' +J.'." h1)).~J.'. subject of security for the total amount of unpaid tax.
TO'l1l f(}m (}.tf1: OD1I;Jf1.m- I1I\P'AII}')' U'JlJ':t: 4) Where the Authority has served a notice on the
m-1~ h~Y "J.'.mJ.'.q. 1.ol-l: OtpflTlJ' h1)).Y1I Registering Authority under Sub-Article (3), the
ff.l(}m- TO'l1l h1f.U'JlJ'rm-cr nu.o-l: IIJ.'. h1~1\ Registering Authortity shall without fee, register the
fODY"'- (}'1~ J.'.ODH..,I1A: </'f.cr (}.A f-t-(}m notice of security as if the notice were an instrument
fODY"'- OD.oT h1f."'mn</, tflj ftpfl:"lJ'm- '1"1'111 of mortgage over or charge on, as the case may be,
fU'J..{,1\1m-1 :J-hfl l\U'Jflh'{'A nU'JlJ'rm-cr ODAh- such asset, and such registration shall, subject to any
n:lt.., h 1f. +() m ODY"'- WJ.'.cr h 1f. U'JlJ'rm-cr 1\.11 prior mortgage or charge, operate while it subsists in
o~ WJ.'.~ h~Y tflj J.'.~mt-A:: all respects as a legal mortgage over or charge on the
asset to secure the amount due.
H- :J-hfl h4.V- fll\l\m- 'l'n:t'
12. Taxpayer Safeguards
ntlU htp~ h~A E ODlPlT f+YH U'JlJ'rm-cr '}{Jl:"
fU'J.YHm-: fU'J.mn</'m-: hlJ' fU'J.ODH1nm- n:J-h{}. 111\P' Any property seized under Section 3 ofthis Proclamation
A1I}1.o:F J.'.(],lJ'A:: U'JlJ'rm-cr 1\.1\fOD1..,P':" hilA nILu shall be seized, held, and accounted for only by the
h~A ODlPlT f+ YHm-1 1.olT U'JlJ'rm-'}cr 1\.11 Authority. No other agency of the govermment may
~h1Y:" ODIPI.T OU'J~I.'" h1)).(}mm- wJ.'.~ h'})).-'-III\ require the property seized under this Section to be
~I\T ODmfq. hJ.'."fA~:: f+YH 1.01.:" f+lim h'}Y,tf't transferred or given over to it for any cause whatsoever. If
h7iyaa: h+17m- 11H.o m-fl'l' :J-hfl h4.V- hU'J..{,I\..,n:,. any property seized under this Section is sold, any
o~ nl\J.'. ftf'1m- 11H.o 1\1.01.-1: 111\0.:" w)).ym-'t- portion of the proceeds in excess of the persons liabilities
J.'.ODl\ftA:: shall be returned promptly to the owner of the property.
1~ litI1 ~1..t-l\ ~:M"" ,;Ju,1IJ~'I'C 1) ;1'''1''1''' n"',} Iitfj~ 'H". Fe.deral Negarit Gazeta - No. 20 31" December, 2002-Page 2017
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IE' f1'~ttn. "'~;r 13. Duties of Recei vers
cry/\:,. 01\.'}r-A'f 1) In this Article, "receiver" means a person who, with
Ii' OtlU h1"'1\ OJ-il'l' "1'~ttn."
OJ-il'l' fDll..1~1 f;rtJil h4.~1 Ull:" Oi'oP/\hi': respect to an asset in Ethiopia of a taxpayer, is:
u) fh-q1f 111~:" hllJ~ Iflj fi-(}foP: (a) a liquidator of a company;
/\) h~C~ o..} OJ-tJ.1.mf.9" O~C.r.' 0.:" f-Hi (/IJ (b) a receiver appointed out of court or by a court;
1'~ttn.t (c) a trustee for an unrehabilitated insolvent;
ch) 011."'It- OJ-il'l' fDll..1~ ~C~.} q/\hf.t-: (d) a mortgage in possession;
OD) ODf"" Of.tI;rOJ- FC,fDll..1~: (e) an executor of a deceased estate; or
11') f'JP1'1 (}OJ-111~.}' fDll..fil1''&;~C mf.9" (f) any other person conducting a business on
~) o~.., i-/\-;r fl\.AOJ-1 (}OJ- f1"'~ Fir fDll..f behalf of a person legally incapacitated.
tt,~j 2) A receiver shall, in writing, notify the Authority
cry'iTOJ-9" (}OJ- ~OJ-:: within 14 days after being appointed to the position
~. 01\..}r-kf OJ-il'l' fA 111~.} 1'~ttn. Iflj f1'j'iOD or taking possession of an asset in Ethiopia,
mf.9" 111~.} Of.tI;rOJ- FC f1'f.~1 1'~ttn. hi-j'i whichever first occurs.
ODO.} mf.9" 111~i: Of.tI;rOJ- FC h1'f.~10:" 3) The Authority may, in writing, notify a receiver, of
ho-/\i: h.,.f.ODOJ- .,., "f.9"r: OIQ .,., 1./1. OJ-il'l' the amount which appears to the Authority to be
f1'j'iOD mf.9" 111~:" Of.tI;rOJ- FC f/\ ODIf't-1 sufficient to provide for tax which is or will become
A;rtJl'1- qAFAllJ1 cryil;rm:t> h/\O:":: payable by the person whose assets are in the
f;rtJl'1- q/\FAllJ1111~-I: 01'~ttn.OJ- f.tI;r FC f/\ possession of the receiver.
E'
(}OJ-fDll..LA..,0:"1 f;rtJil ().&;/\ODIiL 1 fDll..filLA 4) A recei ver:
1OJ-1 f11"11 ODm1 /\1'~ttn.OJ- 0K"m.~ fil;r (a) shall set aside, out of the proceeds of sale of an
OJ-:J>A:: asset, the amount specified by the Authority
Q' 1'~ttn.OJ-: under Sub-Article (3), or such lesser amount as
u) 01o-il (E) ODIP~.} O;rtJil qAFAllJ't- is subsequently agreed on by the Authority;
h"''''
f1'1AOOJ-1'f11"11 ODm1 mf.9" hcryil;rm (b) is liable to the extent of the amount set aside for
<tfOJ- 0:\1\ Oil9"9"~.} f1'f.~(}0:"1 1\.1\f11"'0 the tax of the person who owned the asset; and
ODm1 h111~i: 7if6fJ> I\f. ""(1 /\11:rOJ- fll.,. (c) may pay any debt that has priority over the tax
9"llJA:: referred to in this Article notwithstanding any
A) 1'''''(1 /\11:rOJ- 01''''ODmOJ- f11"11 ODm1 AtJ provision of this Article.
f1'~hOOJ- 111~.} q/\o..} hlf~OJ- (}OJ- /\cry.L 5) A receiver is personally liable to the extent of any
A1OJ-f;rtJil ().&;1'mf<t f.1f'iAII amount required to be set aside under Sub-Article (4)
ch) OtlU h1"'1\ f1'ODAh1'OJ- n.ljC9" h;J-tJll for the tax referred to in Sub-Article (3) if, and to the
().&; /\.h~A extent that, the receiver fails to comply with the
"'f.9":"~'} fAOJ-1 cry'iTOJ-19"
f.i-I\A:: requirements of this Article.
~. 1'~ttn.OJ- 01o-il h1"'1\ (E) f1'm"'(}OJ-1 ;I.tlll
(Q) ODIP~:" 1'''''(1 14. Notification of Changes
01'ODAh1' 01o-il h1"'1\
Every taxpayer shall notify the Authority, in writing, of;
/\1I:rOJ- h1..ct.,.OD'I' f1'f.~1OJ-1 f11t111 ODm1 O'LU
1) any change in the name, address, place of business,
h1"'1\ /\1'm"'(}OJ- ;rtlil ttl\CP/\ .,.""(1 /\11:r Oi-'"
constitution, or nature of the principal taxable
ODmOJ-11"11 AtJ O..,A 1'mf<t f.1f'iA::
activity or the activities of the person; and
2) any change of address from which, or name in which,
IQ' /\OJ-{I1i-1 ilAcryil;rm:t>
a taxable activity is carried on by the taxpayer,
cry'iTOJ-9" ;rtJil h4.f.:-
within 5 days of the change occurring.
Ii' iloo-: h~t-"liOJ- f1"'~ Ft-OJ- (1;r: hf.~~"f..t::
mf.9" ;rtJil fDll..hLAO:"1 CP1-;;:OJ-f1"'~ Fir
Section 4
h 1:t>il:J>11.mf.9" fDll..fh'iOJ-'iTOJ- 1'..,qlr.} flf.~.}.:
Appeal procedure
~. ;rtJil fD7..hLAO.} f1"'~ Fir h 1:t>il:J>11.fDll..h'im
15. Review Committee
10:" h~t-"li mf.9" il9":
Members of the Review Committee shall be appointed by
f"'f~ h1Y.11'~ f.U1't- A;rhl'1- q/\FAllJ1 O~ "''i:'' 1./1.
cryil;r m:t>h /\ O.} II the Minister of Revenue or the competent authority of the
OJ-il'l'
regional government, as appropriate, upon the recom-
tJ~A ht-.} mendation of the head of the Authroity.
f.'" q ~ fDll...,. C 11 O.} F C fl.}
16. Powers and Duties of the Review Committee
I~' fho.i:;r hllJ~ I"tDll..i;i 1) The Review Committee shall be accountable to the
fho.i:;r hllJ~ I"tDll..i;hql\.} O;rhil q/\FAllJ't- ~I\&.
head of the Authority and shall have the following
h:t>t-n.~.} h1f.h..,ql1~i: 01n.sPi- DIl..~il.}C mf.9"
h..,qq qAOJ-fhAA qAFAllJ1 f.(}fcryfrll duties:
(a) to examine and decide on all applications
q
Ii' i; il/\ DIl..lj~OJ- FA llJ1'i 1'''' c:
f h o.i:;r h llJ~ I"tDll.. submitted by tax payers for compromise of
Ii' I"tDll..i;OJ- 1'm~ ~-I: /\;rh(}' qAFAllJ11flj: penalty and interest and on the tax assessed;
U) O;rtJil h4.\"i- oP"'65J. h 1..ct~...: m/\~ .,.~ h 1.';.
f.~'" mf.9" f;rtJil ..,Y..;r h1..ct"li"liA fDll...,.CO'
cryODAh:rsPi-1 AODODCODC'i OJ-"'I~ /\ODilm:":
1~ !li'f.!~ t..F..t.t\ 'i;J&-r ;lUll) ~'I'C tt ;J-..,..,P' ttl .po')Iif2~ 't.,.. Federal Negarit Gazeta - No. 20 .31" December, 2002-Page 2018

1\) h+lo-:" M1.-J::1'9~ ;1C ..,')j..,+ l1\r""') (b) to gather any written evidence or information
lP/ljr""')9" f~,h.C;: lP/ll~:4'9~ID"'" 0II~:4'9~ relevant to the matter submitted;
OD (}
-0 ('111 II (c) to summon any person who directly or indirectly
th) 09"CODt. It,. fOl/.11""') .,..c;,. OOl/.OIII\h+
has dealt with the assessment, to appear before it
l11; "'C(l fOl/.mf"'''''') 1'14: h'),tlODAll
for questioning him about the case under its
h;1'h(}. hlDlt(}') ;1C 0+1':1' ID"'" +1':1'
investigation; and
f1A(f" "'')j.''+ 11\",.') lP/,)~""')'" (}",.
(d) to review determinations made by the Authority
fOD1't."":
OD) f :1' h (}. f1I\P' AIl)') f (}m"" f :1'h II ",.", ~ for accuracy, completeness, and compliance
:"hhl\~: f+".7." hlj ,.U')') h'P~ m-o~ with this Proclamation.
f+(}m 0110'),') f"7~;111': P'AIl)') ,.If ~ 2) The Committee shall only review applicat!Clns sub-
'PAIl mitted to it within 10 days of receipt of tax
~. f M1.-J::1' 1101/.1:h:1'h II h4.f"~ fOl/..,.C 0 m-') M1.-J::1' assessment notification.
1\.1,. fOl/.~I\"" :1'hll h4.~ f:1'hll ",.lt~"7ll:1'ID't1 3) The Head of the Tax Authority may approve the
Of.l (}",. 0 I +'1''''' ",.ll1' M1.-J::1''''',) t}+ ~ 0 ., ""11 recommendations or remand the case, with his
[. f :1'h (}. f1I\P' A Il)') ~"k fI101/.1:""') f",.", ~ Olt-o observations, to the committee for further review.
1\.101;:" 1D"9" o",.",~ Olto- t}A+ll"7"7 ".h')I-J:')
0 OD'"1\~ .,..c;~ h ') f. 1'I' h,),tl:1' ,. 1\1101/.-J;",.
I\. ODA(}"" ,.~" A II 17. Waiver of Penalty
The Review Committee may waive administrative penal-
I%' OD"'6l>J.'}lll\lP/')lt:" ties in accordeance with the directivies issued by the
fMl.-J::1' hll)~ 1101/.1:h'}f.h..,f1-o.,-J: f1n.9~ OI/.tll+C
Minsiter of Revenue or the competent authority of the
OJ"9" h.., f1-o 11\",. fh AA f1I\P' A Il)') OD7.f1D1l)""
ODOD~1 ODLPl"" O:1'hll h...~ It,. f+Il)I\",. hll+.c;f.t.'f regional government, as apprporiate.
OD+6l>J. Ooo-(\- lDf,9" OhkA h'),tl.,lt "71;~.., f,~I\AII 18. Appeal
1) Any person who object to an additional assessment
It. f,..,cft
made by the Authority has the right to appeal, within
li' O:1'h(}' f11\P'AIl)'} f+"I\4C.""') f+~"7~ :1'hll
",.", ~ f OI/.:l'lD9" "7'1'r""9" :1'h II h...,. f:1'h II ,,,.It ~ 30 days from the receipt of that assessment
lP/ll:1'lD't1 hf.~ (}",. IDf,9" 0 M1.-J::1' h Il)~ 1101/.-J; notification, or from the date of decision of the
",.", ~ h + (}m 0+ +') "f.9" c: 0 cD (LP" It) +'1' + ",.ll1' Review Committee to the Tax Appeal Commission
Of11\P'AIl)). f+lD(}"""') +~"7~ :1'hll 2% (V9"lt by depositing in cash with the Authority an amount
OOD"') f11\P'AIl)). "')1; O"7ll111 I\..,-oc f,"'f1~ (}OI/. equal to 50% of the additional tax assessed.
.,.f1't f,"'f1~ f"7:"l-o OD-o+ hl\",.11 2) If a person appeals in accordance with Sub-Article
~. O')o-ll h,}"'~ (li) ODLP~:" ff,"'f1~ M1.-J::1' +C(l (1) and the Tax Appeal Commission determines his
f..,-oC ""'f1~ .,.f1't :1'hll h4.~ O+~"7~ f+lD(}'1
tax liability, that person is in default unless he pays
o:,.') :1'hit Ooo-(\- 1Df,9" OhkA fODh4C.A ..,1..:1'
the additional assessment determined by the Tax
h ') ~ 1\n + ",." ~ h (}m 0+ +') h,) ll.,. 0 cD +') 1..tL
Appeal commission within thirty (30) days of the
",.ll1' :1'hll h...~ fOl/.4C.I\..,n+') +~"7~ :1'hll
t}Ah.tl\ 1''''+~ """11 decision of the Commission.
[. nH.U h,)+~ ')o-ll h,)+~ (li) O+ODI\h+"" l..tL 3) If no appeal is made within the period prescribed in
""ll1' ,..., f1~ t}A .,. ~ 0 0 f1I\P' All)). f +lD (}'1",.
Sub-Article (1) of this Article, the Additional assess-
+~"7~ :1'hll ""hhl\~lj fOD~~if (flf 1D,tl1""). ment of the tax made by the Authority shall be
+h...f, f,(flj All deemed to be correct and final and shall be im-
2' fH.U h,}+~ ')o-ll h,)+~ (li) 1;');11. h')f.+mO.,. mediately payable.
(flj 01n. ..,-oC h'P~ lll\f,"'f1~ f+f..,.,.,.+ h,)+Y.~ 4) Without prejudice to Sub-Article (1) of this Article,
h'}f.h..,f1-o":1'r"" OH.U h'P~ OIILP~+ f+lD(}). the provisions of the Income Tax Proclamation,
:1'h"~,) nOl/.ODI\h+ I\OI/.+CO- f,"'f1~~ +4C.~0I/. concerning appeals shall, mutatis mutandis, apply to
f,(flj (\-11
appeals regarding taxes imposed by this
Ii!' flP/ll~~:" ~"k 'l:" Proclamation.
f +lD(}'1OJ- ..,-0C 01l:f;A IDf,9" f :1'h (}. f11\P'A Il)') 19. Burden of Proof
f(}m"" ",.",~ +hhA hf,f.I\9" nOl/.A OOl/.+C-ohChc
f"7ll~.c;-J: ~"k"+ f+ID(}"""') :1'hll 1Df,9" ff11\P'A The burden of proving that an assessment is excessive or
Il)).'} ",.lt~ fOl/.:l'lDOD",. (}",. f,l1'ljAII that a decision of the Authority is wrong is on the person
tJti:A h 9" ll+ objecting to the assessment or decision.
Section 5
h II+.c;f.t.'f :"Il)"'~
Administrative Penalties
?}. f:1'hll "7it;1'ID'tI') 01..tL",. f11\"7:"~-o lll\OI/.4C.09"
:"Il)+ 20. Penalties for Late Filing
li' OH.U h'P~ h';.:\,) h'),tl4C.R9" h+ID(}"""
0"-" 1) Except as otherwise provided in this Proclamation, a
Oll ++C: n + ID(}.,,,,. 1..tL ",.ll1' f:1'h II "7 it:1' ID:"
person who fails to file a timely return is liable for a
"'1..:1'''''') IA+1D1l) :1'hll h...,. I\""fn+ I\hl')
~'}~ lDC 1D"9" flD~ hkA 1\11''''''' l..tL: IA+h4C. penalty equal to 5 percent of the amount of tax
1\",.') :1'hll ~% (h9"ll+ OOD"') 1)~% (VI h9"ll+ underpayment for each month (or portion thereof)
nOD"') hit h. qu" 1;~ll OD+6l>J. f,hC;:"A:: during which the failure continues, up to 25 per cent
of such amount.
 r r. ,.,..
!1ff16 Pederal Negarit Gazeta No. 20 31- December, 2002 Page 2019
'A" 11tll1 U.~A ~;J~:" ;JILtli ofI'I'C ;f-"''''P'

f;l-h" .,";l-ID-I:l -:"l-fl I1AO+ mc ID~" flD~ 2) The penalty under Sub-Article (1) of this Article is
I'
h4l.A Oll'~. 1.", f:J"h" "''':J"m-l:l1I\ottO ft. limitedto ~O,OOO Birr for the flfStmonth (or portion
Olt.U ""+A" "0-" "..otlt (Ii) 1:";11. oPlPt"" thereot) in which no return is filed.
f"th~A"" -+... h-flC !l 1f. (VfO/t 1f..,) "1-0 3) For purposes of this Article, an underpayment of tax
A'I'fOll is the difference between the tax required to be
r. Alt.., "..ot X"".I. 98fO 1 A .,.h.l.A ;l-h" ~(Dof",,,,,,(Do shown on the return and the amount of tax paid by
O;l-h" "''';l-ID-I:ll\'' oP;l-f"" 0 ~OtO"" '-Ii :1"hi't- the due date.
-hLA 11A0"" ot.. O.,.ht.AlJJo ;l-h"oP"'hA lAlJJo 4) In any event the penalty may not be less than the
A \t~"" ~lJJoll smaller of theMo amounts:
O",Ii:flJJofO .,.1.;1- f"71'.A(Do :"tIJ"" +'I'fto h"'oPA (a) 10,000,Birr;
i'
h-t:"" hll:""'~.'~i't "1-1I'1fOI (b) lOOpercent of the amount of tax required to be
u) -flCI1f. shown on the return.
A) O;l-h" "''';l-m-l:l 1\" --Ah"" h~OlO""
f:1"hh -m" f OoP'" (,,'}.(' oP'" TCi't'}"") 21. Late Payment Interest
1) If any amount of tax is not paid by the due date, the
ri' "1M O.,.hLA ;l-h" 1\1-"A"7.;l-ft1l mA.(' person liable is obliged to pay interest on such
i' -hLA O~OtO"" IDC I\A.,.hLA ;l-h'" -h.l.A amount for the period from the due date to the date
h~OlO"" +'} '-"h.,.h.l.AO""+'} I1AlJJo 1.", lJJo"'I' the tax is paid.
;l-h" h4-\t mA.(' f-h.l.A ..,,.;1- "AO"":I
I, 0lt.1J" '}+It .. 0-" '}+It Ii
"
t"" - II'
f"7.h.l.A
(Do 2) The interest rate under Sub-Article (1) of this Article
IDA.(' fG'I"hL! Ah I1ALlJJof~1I 'oP"" o'}..,.(' is set at 2~% (twenty five per cent) over and above
11 1- pI~ 1\" OCPAlJJo h~"'~. MO~~IIDA.(' the highest commercial lending interest rate that
O8tlJ1. 1\" rlJ OoP'" (VI "fO""" 0-.,.) ;l-hftoO"" prevailed during the preceding quarter.
"lI'liAII

htt:A ".('"..,. Section 6

fID"~A :"tIJ"'~ Criminal Offen~es
22. Procedurein Tax Offence Cases
rl' O;l-h" f"'7..I.O"'" ID'}~fto~ "A"7.-~O"" ~~ A tax offence under this Section is a violation of the
~C,..,. ""
criminal law of Ethiopia and shall be charged,
Olt.U htt:A f"'"t"~"" O;l-h" 1\" f"'7.LOIJDolD'}lfto~ prosecuted, and appealed in acc.ordancewith Ethiopia
fID'}lA" 08:"" ;"1-'} O-.,.I\Att: f"'7.LfJIJDoO-II'~ Criminal Procedure Code of Ethiopia.
hi't- f"7.08lPt"""'f f"t;l-f. '-Ii ""'11~ f"7.+COlJJo
OID'}lA" -:".. ;,.", ~~ ~C,..,. oPlPt"" "l1'liAII
23. Tax Evasion
reo ;,...,.. O-tlJ" ;l-h" "I\AoPh.l.A A person who evades the declaration or payment of tax,
;".." O-tlJ" fi'tOi'tOlJJo'};l-h" 11\";l-m+ m1-fO f"7..I. commitS an offence and, in addition to any penalty under
A..,O""'} ;l-h" lAh.l.A "'liTlJJofO i'tlJJom,}~A '-'}~ Section 5, may be prosecuted and, on conviction, be
Ua08 Um&-AII "AII'~fO Olt.U "CP~ htt:A lJ -11""" subject to a term of imprisonment of not less than five (5)
h"'7.tlJAO""-+Mii 0"'t;Q."'~ 'I'4-"'~ -11'~ Ott:C.(' 0."" years. .

i't.l;J"'I' h~ ,-..,. 0",,,,, ~~&-..,. 1 -+tlJAII

24. Making False OTMisleading Statements
ri' fdti't"" ID"" ,,/t/t~ oDl~ "A",:"l1l 1) A taxpayer who,
i' "'IliTlJJofO ;l-h" h4-1-1 (a) makes a statement to a tax officer of the
u) A;l-hc\-I1A~AtIJ'}11'&-"'''"..~ ~'I'1I0.,.- Authority that is false or misleading in a
Ah.,.fUi't""ID"fO ~ -l~ lottO' lD1-fO material particular, or
"
A) A;l-h i't- q A~ A tIJ'} II' &-.,.~ t\. otC1I h"7." I1lJJo (b) omits frOni a statement made to an officer of the
-..,A.. ."'1' -..,A<Ai(Do'} ~ t\.1~C'" Authority any matter or thing without which the
"
0"7.~A ,,\\:\ '} oP"'''''''' f"7. .,qTlJJo'} ~'I'(1:f statement is misleading in a material particui:::r.
'''+l '-1~II'~f fm"1:A h" 1--lPl""O;l-AII commits an offence and is liable on convcition..
I' f., /t.,. -.., A<Aif .,.ftmlJJoID1-fOoP1}"'''''f"7." 11(Do 2) Where the statement or omission is made "',lthout
~'I'-fI f"''''IDlJJo lAO-l: fOh'}''''' fl1'~ '-,}~11'~' reasonable excuse,
u) foP"'AMiilJJo""hhA~ ,A-II''} t\.~l"O"" (a) and if the inaccuracy of the statement were
IA-rit' t\.h.l.A f"7..,l1lJJo;l-h" h1lC Ii if. undetected may result in an underpayrnent of
O",,.OA'I' ,,'}(\ '-1Jlh.l.A f"7.'~C'" hll'~ tax by an amount not exceeding 1,000 Birr, lO a
;l-h" h4-\t h-oC I if. 0""'" '-Ii h1lC r if. fine of not less.than 10,000 Birr and not more
0"7"OA 'I' '1"'"11 -+<Ai '-Ii h" ,.(' 'oP"" than 20,000 Birr, and imprisonment for a ternl
0",,,,, '-Ii hi: ,-..,. 0",1-0A'I' '-~&-..,. of not less than One (1) year and not more than
,.ottIJAII three (3) years, and
A) ,,'}(\ '-'JlhLA f~l"lJJo :1"h" h1lC Ii if. (b) if the underpayment of tax is in an amount
f"7.0A'I' hll'~ h-oC S if. O""'}" ~Ii h1lC f if. exceeding 1,000 Birr to a fine of not le~s than
0"'1-0A'I' f.,,"-o -+<Ai '-Ii h",,"" 'oP"" 20,000 Birr and not more than IOOO,OC'O Birr
0"7"" '-Ii h""""" 'tIP"" O","OA'I' '-P'&-"" and imprisonment for a term of not k~;s than
UtIJAI1
,...,. f"7." 11lJJo three (3) years and not more than five (5) years,
e. f dti't"" -.., A<Aif.,.i't m lJJoID1-fO 3) Where thestateplent or omission is made knowingly
~'I'-fI '-'}Jl"'''':'' IA"'~l1lJJo II',} .,.1Ifto ID"fO or recklessly,
Ohl1.(' :fA"'~~"" fll'~ '-,}~II'~f
 110 17(.~~1..t-A ~;Jt-r ;JtLtiJ<liTe~ ;MulP' ~I"" ,.,... Federal Negarit Gazeta- No. 20 31" December.200r"-' Page'2020 -
Iilf1~

v) fou..,A6liLlD--rhhA2i' lAou", l\.~l"OT (a) and if the inaccuracy of the statment were
lAouiF/r l\.h~1\ f"t11)lD- ;t-h" h-flC Ii it undetected may result in an underpayment of
O"7"OA1' h1(\ h'JLh~A f"7.1~C'" h"~ tax by an amount not exceeding 1,000 Birr, to a
'+h" h'i-~ h11C !l it O"7nn h'i h11C f it fine of not less than 50,000 Birr and not more
O"7"OA1' f1")n11 ~+6IiL h'i hh"'''T 'iOUT than 100,000 Birr, or imprisonment for a term
O"7f")" h'i hhp'C 'iOUT O"7"OA1' hP'&-TI of not less than five (5) years and no~more than
A) h,,)(\ h")-'lh4C.~ f~l1lD- h11C Ii it
'+h" ten (10) years; and
f"triA1' hlnh11C <:T;it O"7n" h'i h11C If (b) If the underpayment of tax is in an amount
it O"7"OA1' f.,")n11 ou+6IiL h'i hI 'iOUT exceeding 1,000 Birr, to a fine of not less than
O"7f")" h'i hIt 'iOUT O"7"OA1' hP'&-T 75,000 Birr and not more than 200,000 Birr or
"+tfJAII imprisonment for a term of not less than ten
?;T;' f.+h,,"") I)AP'AtfJ") P'&- "A"7(aCjhA (10) years and not more than fifteen (15) years.
~
6' "7'i:flD-'" (alD-1 . .
V) OrltJ h'P~ OUlPlT P'&-lD-") O"7h'i(l)") 25. Obstruction of Tax Administration
fA").f.+h" ""
I)AP'AtfJ,,) 1P&-"'2i'.,...,I)C f(a'ihA 1) A person who,
(I)"'" A"7(a'itlA f'l"hl. f f1I"'" (a) obstructs or attempts to obstruct an officer of
A) fh'P)t.") h4C.'IO'" O"7'iTlD-~ h\to:\") the Authority in the performance of duties
f(a'ihA (1)"9" A"7(a'ihA f'l"hl """h")~ln f under this Proclamation, or
m")1:A OU4C.Oao-.,.l;l"'tn f It.~l~OT h11C (b) otherwise impedes or attempts to impede the
liit O"7f")" h'i h11C fit O...,"OA1' f1")n11 administration of the Proclamation,
OU+6IiLh'i Oo-AT 'iOOT hP'&-T 1A"tfJA II commits an offence and is liable on conviction to a
I' f"th.,./rT h'ih~.un foota(a/r A.l\-T "''''I)C'T fine of not less than 1,000 Birr and not more than
f.+h,,"") I)AP'AtfJ") P'&- f"7(a'ihA "''''I)&-T 100,000 Birr, and imprisonment for a term of two
1f~lD- "m(a~/r ; (2) years,
v) f;t-h" h'i-~") 10. h"1" fP'&- h,:"":J>f\9'T") 2) For purposes of Sub-Article (1), the following and
f"tOUAhi: (a~p..~1 I ~;r.c"'T' (I)"'" h.~T similar other actions are considered to constitute
"7'iTlD-")9" OUl1f9'T ADDOIJCDDCf;t-h,," I)A obstruction;
P'AtfJ") It.m'':''.U~2i' 1ft;" lA0D1;+ i '(a) refusal to satisfy a request of the Authority for
A) f'+h,," I)AP'AtfJ,,) "1'14: h1-'l+C11 It.111
inspection of documents, reports, or other infor-
~:J>~?/ 1ft;" fAOD1YT i mation related to a taxpayer's income-
tit) f'+h,," I)AP'AtfJ") 1P&-"'2i' (I)~;t-h" h'i-~ producing activities;
f,,)"'~ pi&- (1'+ ""...,1)+ lAlD-1 OOoOT (b) noncompliance with an authority request to
OD1~11 II report for an interview;
fIi' AlD-1" fA"7"'+(I):"
(c) interference with a taxation officer's right to
h'+Jt Ii O"7.1nlD- ODlPlT' 0o-1;t-9'T "I. f"'~l'" enter the taxpayer's business premises.
AlD-tnT' A;t-h,," I)AP'AIIJ' '''it;t-(I)+ "7'iTlD-~ (alD-
1''i-'''2i' ODIf). Ott:C~ o.T It.l;l11' I 26. Failure to Notify
V) 1''i-i: f.,.4C.OOD(J)o1M .,.00 (I)"'" Ohl)~ TA.,. A person who fails to notify the Authority of a change as
~hT flf~ h,,)~If~ h11C lit 0"71")" f1,noO required by Article 14 commits an offence and is liable on
OD+6IiLh'i Oh,,)~ 'iODT hP'&-T i conviction
A) O,,"""T o-1;J-9'T hoOC T;it O"7n" f1")n11 (a) where the failure was made knowingly or
ou+6IiLh'i 0'; mc hP'&-T ~+tI)A II recklessly, to a fine of not less than 10,000 Birr
f)1. O;t-h" I)AP'AtfJ)' IP&-"'~T f"tUlao-1'~T and to imprisonment for one year; or .
(b) in any other case, to a fine of not less than 5,000
Ii' f.un h'P~ ~");l1.9'~ Aoyit~,9" O:t'h" I)AP'
AtfJ). f"'+ml Birr and to imprisonment for six months.
IP&-"'~ (I)"'" 1'+~'l" "'+tfJ~
f~Ol;
V) Oih.., ODlPlT l\.11;lD- h"7.11) htt:l (I)"'" 27. Offences by Tax Officer
7iA"7T lD-QJ"h~+mlOT .,...,I)C ;lC 0""1n 1) Any tax officer or former taxation officer employed
O+1';t- (I)"'" +1'.,.1jI I)AIf~ OD'1~ f1")n11
who:
.
in carrying out the provisions of this Proclamation
(I)"'" 'i"~T htt:l (I)"'" "tn;t- h")-'l~l
""" (I)"'" 1'.,.+01\ f Ahtt:llD- (I)"'"
..,AT fmf+ (a) directly or indirectly asks for, or receives in
A"tn;t-t& ",,,4<0(I)"" -'V fmf+ m"". connection with any of the taxation officer's
f.,.+OA (I)"'" i duties, a payment or reward, whether pecuniary
A) h;t-h" 0"t1ilD- 10. "7~OCOC m"". or otherwise, or promise or security for that
""
htlU h'P~ ~';11;9'T ;lC (I)"'" h"'(amlD- payment or reward, not bieng a payment or
~"d.~T OUAI1"'h~'"'' ;lC f"'U"l,,) .,...,I)C reward which the officer is lawfully entitled to
Aou~O'" i "71:l.., f"t11)lD-") h"7~l'" receive, or
Aou;t-+oOI "'10. lA.If~,,) ~1C AODtt:+~ i (b) enters into or acquiesces in an agreement to do
O;t-h" fDtUJ'" f"7~OCOC .,...,I)C or to abstain from doing, permit, conceal, or
Aou~O:" ""(I)"'" O"tn1'C AOD"''''OC t&A "11) connive at any act or thing whereby the tax
(I)"'" O"t 1 I)lD- "7'iTlD-'" lD-A lD-"1' OtlU revenue is or may be defrauded or which is
.,...,I)C ou"'I)O~ ") fOUta"
""''''~T f(am f contrary to the provisions of this Proclamation
1''i-'''~ oulf)' Ott:C~ I1.T It.l;l11' h11C !lit or to the proper execution of the taxation
f"7"OA1' f1,noO -~ h'i hI 'iODT officer's duty,
O"7f'" h?; 'iOOT ft.,"OA1' hP'&-T
"+tfJAII
1A' 11(11 1.1.("A ~;J&T ?UII} <t1'C ~ ;J-"'~I'"'~1"'1 Iiin?i ,.,.. Federal Negarit Gazeta - NQ. 20 31" P'.< ;;.'<'
.. ,., ,.,,'
~,Ili""""'~"'..,""~
.-."
..:f--2,02 ~
",., :.,, ....
",."..-

I. f;J-hh tll\P'AtJ)). 1Pt.-t-~ f"~ mf.r f~Ol 'he; commits an offence and is liable on convctiOn to a
fH.U') h'P~ 1:') ;J1.9'"f I\"'ilLIJr f-t-"'ml : fine of not less than 50.000 birr and to imprisonment
01\.-1'f-k 1 ')..,1: :It.., 0')'" 1: :Jtl.tJ) ;J-+1fP'h').Il mtJ) for a term of not less than teo ( ! "~':'n ,one! '~utmore
than twenty (20) years,
h;J-HHeD-~f.~+ ool)f Oil-t-"'C :
2) A tax officer or former (;"" . ,yed in
u) ;J-hil,) O"'ilLIJr l11: tlt\eD- P'AtJ)') mf.r carrying out the provisions or thisP; \ ,'; Jdmatian.
..,f..;J- rh') 1:" 1 m"'eD-') f 1\." (leD-"'t;TeD-')r
except such information is requir~d th C')mmer-
ool)f I\"'t;TeD-r 1\." (leD- mf.r fH.1 (leD- cial Code of Ethiopia to be putJ1ishcJ in the Ti.1de
mh.A t\ln (leD-hltA f(lm : Gazette, who,
(a) discloses to any person or that person's
1\) OH.U h'P~ oolPl-1' ;J-hil,) O"'ilLIJSf" l11:
representative, any matter in respect of another
1 t\eD-') P' A tJ)') t\ 00 m"'9" mf.r fP't. ..,f..:r') person, that may, in the exercise of the t.:.xation
I\oomtJ)-1''h')"l1il"fA O;J-tlil tll\P'AtJ)). H')1: officer's powers or the performance of the
f"l.:fYeD-') "'t;TeD-')r ool)f O~C1: 0.+ taxation officer's dUIit's under the said
-1',).,11 I1AIf~ Oil.,..,.C I\V'il-t-~ m1') hltAl:: provisions, come to the taxation officer's
knowledge; or
fflm 'h,)1.If~ : (b) permits any other person to have access to
'I'4--t-~ oolf)' O~C1: 0.:"l\l.71'1' h11C In. 0""1il recor~s in the possession or custody of the
f1')tl11 00"'65j. 'ht; ho-t\-1' ~oo+ O"",)il hhSf"il+ Authority, except in the exercise of the taxatIon
~00-1' O"'f.OA'1' 'hP't.:" f."'tJ)A II officer's powers or the performance of the
officer's duties under this Proclamation or by
c. fH.U h')"'''' 1:').7"1. f:rhil tlt\P'AlI}). 1Pt."'~ : order of a court;
u) "'t;TeD-')r (I~1: mf.r ool)f:- Commits an offence and is liable on conviction to a
(i) t\H.U h'P~ mf.r t\"'t;TeD-Sf" 11tHI ~tI fine of not less than 10,000 Birr and to imprisonment
h'P~ hL'IJSf" hilL"1. Olf~ 1.H. : for a term of not less than two (2) years and not more
(ii) O:lt.., f-t-(lmeD-') .,...,tlce; ;}"k~-r than five (5) years.
I\OPmll}+ hilL"1. 1\1f,): I\'Pt;eD- 3) Nothing in this Article shali prevent a taxation
officer from disclosing,
1>Jl-t-C: (a) any document or information to:
(iii) ool)f t\ool\'Pm'1': -t-1.t.t.f1. ..,11C') t\'" (i) any person where the disclosure ISneces-
il"'l+ h,:,.r-k1 hl\.t\"1- h1~1- .7C sary for the purposes of this Proclamation
tl1.l11-eD- ilrr~+ oolPl."f' h..,tl11 or any other fiscal law;
(ii) the Auditor-General where the dis-
""TeD- fl\.ft<>1-h1~1- tll\P'AlI}Cf1-: closure is necessary for the perform.wce
(iv) O:lt.., f-t-flmeD-') -t-..,tlct; ;}"cC.~:,. of duties entrusted to it by law.
I\oolDlI}:" hilL"1. 1\1f'): t\P'~ r..,l1ct; (iii) the competent authority (If the govern-
t\ IJl 00-il t; f1"7.7i'): ment of another <.,it!!1!', ""!lh whIch
(v) hH.U O"f. "A"'11\~ I\"'t;TeD-C}" :It.., Ethiopia has ente.red i 'j "i,J<:(,[i'!nt

hitL~"7. 00/0.+ ..,f..:reD-1 I\OOL~r for the avoidancc uf duubie ta:.,atll . ,n

for the exchange of infonn;u1un. tu lll':.',
f"7.1h 1-t\eD- ool)f 'h')"lflmeD- h111.9'1- extent permitted under the agn:cmcJ1I,
"7.~il1:C O"',h.~ I\:rH1H (iv) the Ethics and Antl-CCHTUptlc.n (\:;-0-
1\) ;}".c.~:rTeD-') ~oomll}:" hilLf\1. 'hilhlf~ 1:lil mission where the disclosure IS nc~:cs-
h,) 1:') fleD- I\f.-t-eD- {}. 00 l)f 9'1-') sary for the performance of dulic'; en.
f'" f.m:"
trusted to it bv law.
1\",e; TeD-C}" 0 00')'" P';" 1 11. P't. "f. t\ "7.11 (v) a law enforcement agency no! '.kscrit)'~d
1\'"A 'h e; I\it;J--1'l\ 1:tI it 00/0. + IPt."'~ above where the Minister of RCVCIIUI:
~oo itm -r h1'" 1.eD-C}":: issues written authorizationto make dis
closures necessary for the enforccmC'!i! of
tI~. "f.L.,.1: :rtlil itt\(JDfl11fl11 the laws under the agency's autholity: '.'1'
",e;TeD-C}" (leD- OH.U h'P~ oolPl."f' ltf.L.,.1:t\+ :rtlil (b) Information which does not identify a spc,ifi<
lDf.C}" 'h')1.:rhit f"7.:rf. person to any person in the service of the :;tak
1\." tI~1 f(lO(lO mf.C}" in a revenue or statistical departrnent \vherc
I\oofl11fl11 flfPhl m,)~A fL~oo IfCf: '1'4-"'~ oolf)' such disclosure is necessary for the petrOl
O~C1: 0.:" I\l.'l1'1' h11C !in. 0""1 it f11 H11 00"'65j. mance ofthe person's official dutie:;
'he; h~ ~00-1' O"'f,)il hI ~00-1' O"'f.OA'I' 'hP't.+ 28. Unauthorized Tax Collection
,..,. tlJA II Any person not authorized to collect tax undC' thl"
Proclamation who collects or attempts to collect l,lX W
tilt. ooc~-1' lDf.r "'Ol:r;J--1' an amount the person describes as tax comm;ls a"
offence and is liable on convjeticn tn :) 11C ;c':'
"''iTeD-r "eD- fH.U h'P~ 1:1.7"1.9'1- 'h1"ltIJ{}. f l.';:
than 50,000 Birr and to imprisonrnent iUl a [CII,nnt j:()
10l:r:rf 1~ltlt: mf.r O"7.it'1'C f-t-110l 'h') 1.1f~ less than five (5) years and not more than ten (j OJ >~:ar'
'h,)1.'P')~eD- 'I'4--t-~ fH.U') h'P~ 1:1;J1.fP1- oooll}h 29. Aiding or Abet(ing
'1'4-:" f.L'GOOJAI: hH.U O"f. f-t-tlltl~""') fL~OO (1m. A person who aids, abets, iJwites, or conspire, v, i1',
'I'4--t-~ 001Y). O~C1: 0.:" I\l;J1'1' ')C.';;J-eD-1 mf.Sf" another person to commit a violation of this Pf(X:!;)!i;;J,)
."f'1111~') t\flmO:" '1'4-:" h-t-mfl~eD- f1')H11 'ht; also commits a violation of this Proclamation. n'~.,
perspn may be subject to prosecution and is hat..:;, (!'
f'hP't.:" :"lI}-r tlAOl\m 01')tl11 'ht; O'hP'&.+f."'lI}AII conviction, to a fine and imprisonment, not in cxu~ss ~
0. 01:C~"'1- f"7.L~r '1'4-:" the amount of fine or period of imprisonment pn ':id.::
for the offence aided or abetted.
li. o')o-it h,)"'1\ (c) f-t-1.~11m. 'h')1."'mO.,. IfCf:
30. Qffences by Entities
h')1: 1:C~-r f.U')') h'P~ Ooo-t-"I\~ '1'4-+ fL~OO
I)Subject to Sub-Article (3), where g, :.:('r1ir;"~ i
"'')1..,., '1'4-1: O""J.~OO1.H.f1:C~1: P't. hith.1~ offence, every person who is iJ !k ::;n;' t:, .
fl1'~ "''i:feD-1}'' flCD-01:C~1: f-t-L~(1Dm-1 '1'4-+ that time is treated as also having COJTJmn\!;1;,.:~i',ani',
'h,)1.L~oo -t-"''1'~: OH.U h'P~ f-t-lI}t\m- :"lI}+ offence and is liable to a fine and irnpnSUi:';.::d I,""
.,.1..'''7. f.1f') O;J-A:: this Proclamation.
 1}\' ~;r$~ ~f..MA ~.7t"" .7ff.1IJ ~TC ~ :M..,P' ~I"',} Iiln~ ,.9'". Federal Negarit Gazeta - No. 20 31" December.2002-Page 2022
. -~ ... y~_;e','.Z~-
""'~.,- ',-
.,,~.~-,

~. OH.U h,}"'1\ '}(HI h,}"'1\ (C) f.,.1.'1""CD- 'h,}1..,.

mO.,. If'i: O'/CjTCD-ijUf:C~:" OH.U hfJ'~ 001P1.:"
2) Subject to Sub-Article (3), where an entity commits
lLht.A fOl/..,qCD-') (JJf.ijU hfJ'~ 'h'}1.;rtJil fOl/.4'>'1' an offence by failing to pay an amount of tax,
I. CD-') 0'/ CjTCD-'}ijU including an amount treated by this Proclamation as
't'" tJ lJ:f ., 0. Itf 1.C<? f.,.1.
'h'}1.If '1 '1'~-I: O.,.t.KooO:" 1.tL (JJf.ijU'1'~-I: h.,.t.K though it were tax, every person who was a manager
000:" 'UJ. hil.,. f:1fP 0'10~:" itf:il:" (JJto:" CD-il'1' of that entity at that time or was a manager within six
ff:C~-I: P'to hilh.f~ f'10~ (),-:f hf:C~-I: 'h'i (6) months prior to the date of commission is jointly
ht\.l\CD- ()CD-;1C Oh'}f:'1:"'i" O"'CjmA f;rtJ,," ql\P' and severally liable with that entity and that other
All)'} l\OI/.t.A.,CD- ;rtJit 'hCj A.tto:f tJlJ:f,-:f "'mfct person to the Authority for the amount.
f.IfCj f\cII 3) Sub-Articles (1) and (2) do not apply where
O'}tJ.il h,}"'1\ (Ii) 'h'i" (I) f+1.'1""':": (a) the offence is committed without that person's
U) '1'~-I: f.,. t.o 00 CD-<?l\ (){}-Itf CD-:J> (JJf.ijU Itf. ilO'/
knowledge or consent; and
0'/0:" hlf'1:
(b) that person has exercised the degree of care,
l\) h,}~' '1.,t::f'} 0'1''}.4>-I: fOl/.ff. ()CD-O.,.ooltltf.
V-1;r CD-it'1'f'1'~-I:,) ooUijU l\ooha\hA f.(JJil.';
diligence and skill that a reasonably prudent
TfJ' A .,.-0 tto fOl/..,00-1: '1''}.4>-I:
,-:f'}: .,.., 0.CD-'} person would have exercised in comparable
:";1:" 'hCj fhlPtoC '1'0-0 f.,.IfPa\O:" 'hCijUjf
circumstances to prevent the commission of the
<?l\ () {}- (JJil P. f.,.., 1 'h,}1.1f'I: .,. t. , 01/.hf.If'l- offence.
O:"ijU:: 4) In Sub-Articles (1) and (2), "manager" means.
~ l\'}tJ.il h,}"'~ (Ii) 'hCj (I) ht.,OijU "P'to hilh.f~" (a) in the case of a partnership, a partner or manager
0'/ l\ :,.; of the partnership or a person purporting to act
u) f'liCtJ'i O'/"'OC'} OOl/.ool\h:" f'liCtJ'i"CD-O'/"'OC in either of those capacities;
hqA (JJf.ijU fO'/"'O~ P'to hith.f~ (JJf.ijU (b) in the case of a company, a director, manager, or
hv-l\-I: ~a\'(''1''':f Oh,)~ 'h'}1.OI/.lPto If'i
officer of the company or a person purporting to
fOl/.:rf.:
act in any of those capacities; and
l\) h-q'} f'} OOl/.OOl\h:" fh-q'} fCD- f P' to oo~:
(c) in the case of an association of persons, a
P'to hil h.f~ (JJf.ijUO'/'i"TCD-ijUA.a\ if.ijU (JJf.ijU
Oh,)~ 'h'}1.OI/.lPto If'i manager or a person purporting to act in that
h'h'1H.U ~a\'(''1''':f
fOl/.;r f.: capacity.
tit) f()~:f'} ..,-01.:" OOl/.OOl\h:" f..,-ol.-I: P'to 31. Offences by Receivers
hith.f~ (JJf.ijU OH.V- ~a\'(''1:'' 'h'}1.OI/.lPto If'i 1) A person who fails to comply with the requirements
fOl/.;rf. '1CD-::
of Article 13, Sub-Article (4) commits an offence
i!H;' O"'I.\1o.~:f fOl/.t.OijU '1'~:" and is liable on conviction to a fine of 5,000 Birr and
ii- O'/'i"TCD-ijU()CD-Oh,}"'1\ Ic
'}tJ.it h,}"'~ (!l) 0.,.1.'1 to imprisonment for one (1) year.
.,., CD- 00 IP I.:" 1tf.t.~ijU f.,.1. 'h') 1.If '1: 2) Where a person is convicted of an offence under
'1'~'" ~ '1-1:
OlJ:C.(- 0.:" l1.1.;1.,'1' -oc ~if.u f.,'}H-o 00"'65i. 'h'i" Sub-Article (1) for failing to set aside an amount as
Oh'} f: '}oo:" 'hP'to:" f."'lI)A:: required under Article 13, Sub-Article (4), the court
~. O'/'i"TCD-ijU()CD-Oh,}"'1\ Ic '}tJ.il h,}"'1\ (!l) 001P1.:" may, in addition to imposing a fine and prison
l\;rtJit tJlJ:f fOl/.CD-l\CD-').,'}H-o l\M ql\O'/il.,.onm- sentence, order the convicted person to pay to the
ijUtJ'}f:" O'}tJ.it h,}"'~ (Ii) 001P1.:"
'1'~"'~ If'i Authority, amount not exceeding the amount which
f"'''1 'h,}1.If'1 lJ:Cf: 0.-1: h.,'}H-oCj 'hP'to:" the person failed t9 set aside.
00"'65i.CD- 0"'Q;1,0'/~ l\M fa\it",oomCD-'} f.,'}H-o
oom'} l\;rtJ"" ql\P'AlI)'} .,0. 'h,}.Jl!1.C<? lLf1l 32. Publication of Names
f.:fa\AII 1) The Authority shall from time to time publish by
@!.. f<M..,.~:f'} itijU O;1tLlI) h:"1fP itl\O'/CD-lI):" notice in the Gazette a list of persons who have been
f;rtJ,," ql\P'AlI)'} OH.tJ hfJ'~ hh,}"'1\ ttt-r!J1i
con victed of offences under any of Articles 22 to 31.
Ii' 2) Every list published in terms of Sub-Article (1) shall
f.,.1.'1"",:"'} f(JJ'}1:A '1'~"':f Ooot.KijU f.,.t.I.1.
qTCD- (),-:f itijU 1IC1IC Of1.tLCD- O~l\;r'f ;1tL(O:f specify:
;r:"1fP 'h'}-'l(JJlI) f1.C;1A:: (a) the name, address, and principal enterprise of
~. OH.U h,}"'1\ '}tJ.il h,}"'1\ (Ii) 001P1.:" ;r:""" the person;
fOl/.aJlI)CD-1IC1IC:- (b) such particulars of the offence as the Authority
v) ff:C~-I:,} aJf.ijU f<?l\(){}-,} ilijU 'h'i" hf:toif: may think fit;
l\) ql\P'AlI)'I- "'.,0. '1CD--Otto fO?fijU'}O:"'} (c) the tax period or tax periods in which the
f(JJ'}1:f\c'} ht. 'OijU 1IC1IC: offence occurred;
ch) '1'~-I: f.,.t.OooO:"'} f<?-oc Hoo'} (JJf.ijU (d) the amount or estimated amount of the tax
Hoo'i:f:
evaded; and
00) ltf.ht.A f.,.I.CD-'} <?-oC oom'}:
(e) the amount, if any, of the additional tax im-
IP) 0"'Q;1,0'/~ 'h'}-'lh~A f"'(JJ()'10:" <?-oC \1l\
f.U'} '1-: posed.
 1~ gn:1)!: J..1..t./:\ "?~T ?t1tIJ ~1'C 1) :M"'~ 1)1"" liiU?; ,.9". Federal Negarit Gazeta - No. 20 31
SI
December, 2002-Page 2023

hif:A flfl:" SECTION 7

A ~ A ~ 1:') ;J1.sP"f Miscellaneous Provisions
t!}C- fao"'fI OC dlf-o:1" 33. Duty to Cooperate
1) All Federal and Regional Government Authorties
b- ~u') ~1'~ OP't. ,,~ /\0'/1'/.\ f&..f-ot./.\ 'hCJ'fh/.\A
ao,)"'P':1":r- fI/\P'AIlJ~"f hCJ' mh."";f-Tm. 01'Q;l, and their Agencies. Bodies, Kebele Administrations
O'/t9" ~'C~"'"f: f<l>O/\. aol\.,-.';~.C':r,: O'/..,Ot.:"
and Associations shall have the duty to cooperate
lJw~ h:1"h fl. fI/\P' A fl}') ;J C f ao1'fI 0 C .., with the Tax Authority in the enforcement Qfthis
f-o:1"
Proclamation.
~/\flTm.::
2) (a) no Ministry, Municipality, Department or Of-
I- u) O~"'ll~ <l>mC',,~ I1AIf~ m~lJ" f:1"hfl. 11/\p' fice of Federal or Regional Government shall
Afl}') f"'t.tlao f :1"hl\ aoht.f'UL I1A(}m issue or renew any license ~any taxpayer
Ol\.,.<I>C: ;l'hl\ h4.~ f"'1.t."..,O:"') ..,-nC unless the applicant produces a certificate from
om:"-I: fht./\ l\/\aolf~ m~lJ" ~.ltl\ :1"hl\ the Tax Authority to the effect that tax due in
h4.~') O"'1.ao/\h:" f:1"hl\ h4.~ ao/\f ~1'C respect of the preceding year or years, have
11""'~O Ol\.,.<I>Ct.:f'1: fla\ "'1.~l\'I;C: O'/tI;J'Jf been paid or where the taxpayer is seeking
fl.:": f&..f-ot.A mf.'r fhAA ooP'tf fl.+ license for the first time taxpayer identification
~.ltl\ f,).., 1: P't. t.:f'1: ao l\m + m~lJ" O'/1.l\ number (TIN) issued by the Tax Authority
~~"fA9":: unless appeal is pending, or time for payment is
/\) f:1"hfl. fI/\P'Afl}') :1"hit h4.~ f/\O:r-') ..,1..:1" extended by the Tax Authority,
(b) If the Tax Authority refuses to issue a ce'rtificate
l\/\aot.~ap. flJ"l\hc m~<I>+ fO'/~fl1' f1.1f'):
it shall, on demand by the applicant for the
l\/\rtlJw f/\m.1 lJ"h')f:r- OaotlCtlC fl~mtt:
license, provide him or it with a written
/\ mf cf:m. ~fl fl}A II statement of its reasons therefore.
m) flJ"l\hC m~<I>+~Afl1'9" /\0'//\-1: m~lJ" f1..,1: (c) Any applicant who is aggrieved by the reasons
P't. t.:f' 1: /\aolP~H- f:1"hf1.fI/\P'Afl}') stated by the Tax Authority for refusing to issue
Ofl fl}:fm. lJ"h') f.,."f :"C f 1"fll 0'/');;:m.lJ" a certificate or by the revocation of his or its
:1"hl\ h4.~ :"t.:1"m.') /\~fl}t 1'10'/.<1;/\.f<l>C-n license may appeal in writing to the Review
~"f"A:I Committe.
@i - f"'1. ~l\ +~ P' A fl}') 34. Powers of the Minister
0 rt U ~ l' ~ /\.fto"f ~ ') <I>"."f h"'1 /\~m. O"'Q;l,O'/ t The Minister may wai ve in whole or in part, the tax levied
"'1.),l\:r-~ /\h. 1'1~ "'1.: /\0'/'"10 t. If m~lJ" /\~ l\1'';1.C under this Proclamation for Economic, Social or ad-
ministrative reasons or for reasons specified under
lJ"h') f.,."f m~9" 01fl. ..,-nC ~1'~ ~1'C ~fif?;/j
~,)<I>~ ~I(/\) O"'tI~tI~+ lJ"h')f.,."f flrttJ ~1'~ Articrle 42 (b) of the Income Tax Proclamation No. 286/
2002.
h.,.IlJ/\m. :1"hla htt:f Ooo-~ m~9" OhkA ~, fO'/1:~'"
.
P' Afl}') .,. fl1'''' :1"A II 35. Directives
aoaotfsP"f
The Minister of Revenue may issue directives for the
t!}~-
proper implementation ofthis Proclamation.
f1fl.sP"f "'1.~l\:r-C /\rtU ~1'~ ht.,OlJ" f"'1.~~ ODODt
fsP"f') /\O'/m.fl}:r- ~"f"AII
36. Transitory Provisions
t!}?;- fOD"{i;J1tf 1:');J1. AI) Excise Tax due prior to the coming inFo force of this
f.U ~1'~ hOD{)CJ'-I:.Ok:r- "'~ht.A f<l>~ fh.h"'~1f
Proclamation shall be paid in accordance .with the Sales
:1"hl\ 07if"l!"IJ h.h"'~1f :1"hit h1'~ O+1.~11m. and Excise Tax Proclamation. .
ODIP ~:r- f "'1.fl 0 fl-n ~If CJ'A II
37. Repeals
t!}~- la/\OD?tC
The Sales and Excise Tax Proclamation No. 68/1993 (as
~U ~tp~ OP't. ,,~ h1'/\O+ 'UL r.lJ"C' f7if"l!"CJ' amended) shall be rescinded as from the day on which
h.h"'~1f :1"hl\ ~1'~ ~1'C ~:s/IUfif~ /h')f..,.7i7i/\j this Proclamation becomes effective.
.,. fl C fl.A II

38. Effective Date

.
t!}:s - ~ 1':( f"'1.0CJ'fl:r- 'Lli. This Proclamation shall enter into for.ce as of the 31" day
~tJ ~1'~ h:1""''''p'' 3'1 <1>') I!in~ q-lJ" r.lJ"C' fOCJ' of December, 2002. .

~1fCJ'AI:
Done at Addis Ababa, this 31s1day of December, 2002.
~.ltl\ ~Ofl :1"1UfP' 3'1<1>')Iun~ q-lJ"
"'e"? m/1.f"C1.l\ GIRMA W/GIORGIS

fh.:r-f"kf L1..t-"'C ~""ht.f1.flf tT-n/\.h PRESIDENT OF THE FEDERAL

,.t.rt~'):r- DEMOCRATIC REPUBLIC OF ETHIOPIA
 .,,,. Iif.~r (0) IJ.6-A ~:JtT ?tLlIJ 4t'l'C ~ :M"I'" ~I +'J Iif7~ '}.\I". Federal Negarit Gazeta - No. 20 31" December,2002-Page 2023 (A)

lP'mtv SCHEDULE
"1C lD-it1' 0"7.00~i:CJ' h~ mY. "1C lD-it1' 0D?1l1- GOODS THAT SHALL BE LIABLE TO EXCISE TAX
f.,.m",)' iJ:J'91'f ,,1. f"7.h~A fA.h"~lI ;l'hit Ah WHEN EITHER PRODUCED LOCALLY OR IMPORTED

,A. tJ., .f, 11 :J'tJ it Excise Tax

fiJ:J'lD-,1.H' Ooo.,.~ (%) Type of Product Rate (%)

l' "'I'itflD-1}"'~~T itl).C (O"'I).C ooAh~ 1. Any type of sugar (in solid form)
",,,...it, ".e,t;Q.I}"C.................................. 33 excluding molasses ..... 33
2. oomtn'f
2. Drinks
2' 1 "'ICJ'tflD-1}" it"" 00 m tn 'f
"
(hft:&. "f.W'7<t9''fCJ' h ~If. 0'1}" 2.1 All types of soft drinks (except fruit
hoo"",,,, Oit.,..,.C) ............................ 40 juices) , """"""'" """"""'" 40
2'2 O~ctT ooAh f.,.n;Jjf. "it"" 2.2 Powder soft drinks ................................. 40
00 mtn 'f ........................................... 40
2'3 04-1MtJ ,oy"oo~T ';l'if1lD-'/ ........... 30 2.3 Water bottled or canned in a factory...... 30
2.4 "'ICJ'TlD-1}""At'1A '''t}tflD- 2.4 Alcoholic Drinks
oomtn'f
2.4.1 All types of beer & stout .............. 50
2.4'1 "'ICJ'tflD-1}"0.&.CJ'hit;l'lD-T ........ 50
2'4.2 "'ICJ'tflD-1}"'OJ~' m~ 2.4.2 All types of wine ...~...................... 50
oomtn'f ...................... 50 2.4.3 Whisky ...................... 50
2 ,4, 3 If it h. ...................................... 50
2.4.4 Others alcoholic drinks ................ 100
2.4.4 lbfro'f "At'1A '''t}:flD-
oomtn'f .................................. 100
3. All types of pure Alcohol............................. 75
3, "'ICJ'tflD-I}'" ~ ~T ,,,. ih
"A t'1A .. .. .. ... .. .. 75
4. Tl}"t}lJ'CJ'fTl}"t}lI" lD-m."''f 4. Tobacco & Tobacco Products

5'1 'Tl}"t}lI" :"mA ................................. 20 4.1 Tobacco Leaf ........................................ 20

5.2 f1.;J&'T: f1.;J&.= f1.;J~froit: f1;;T 4.2 Cigarettes, cigar, cigarillos, pipe
Tl}"t}lI":~~TCJ'~fro'f'Tl}"t}lI" tobacco, snuff and other tobacco
lD-m."''f ........................................... 75 products """"'" .... 75
5. t;Q.lD ...................................... 30 5. Salt """"'''''''''''''''''''''''''''''''''''''''''''''''' 30
6, ~.c;~~TC 0.'If. ,: .,.&.0.")If.,:
6. Fuel-Super Benzene, Regular Benzene,
1:T~A: ;JJfA.'CJ'lbfro'f ,"''''c it1;~T ..... 30
Petrol, Gasoline and other Motor Spirits ...... 30
7. 1i.f9''f hCJ'"'1."T m.,.Cit ........................ 100
7. Perfumes and Toilet Waters ......................... 100
8. t;Q.C:J' t;Q.C:" hCJ'ht;Q.c:J' t;Q.C:" f"'lP~
iJ:J'9''f 8. Textile and Textile products
8'1 h"'~1'C" thC: hCJ'.e,,,, : h~ft: m~1}"
8.1 Textilefabrics, knitted or woven
h"'lCJ'tflD-1}"~fro'f .,.oo,,"~ ~1~'f
0if.&.11 OUAhl}" 0.11"")''''IP~ t;Q.C:J' of natural silk, rayon, nylon, wool
t;Q.c~ 'f: 10 or other similar materials ..................... 10
"""""'''''''''''''''' "........
8.2 000-'" II"~ OhkA ''''IP&' "ooY:"'l: ~~ 8.2 Textile of any type partly or wholly
.,." I}" ,.,. ~h ~ OJ~I}" ';l''''oo: O"'le.'
made from cotton, which is grey, white,
tflD-1}" cflooT m~1}" mc!:
''''IP&'
t;Q.C:J' t;Q.C:" (hmt) ooh"hl ".,..OC 'he.' dyed or printed, in pieces of any length
h"l1-;()lOit.,..,.C) 'h"))lV-1}" '11C!: or width (except Mosquito net and
A11(e'f "'(e"91'f: f"A;J 1i4-tj'f: "Abudgedid") and including blankets,
C:tlJ91'fi fm~A.1f A11(e'f: h~lf.
bedsheets, counterpanes, towels,
0'1}" foo,,"'''' t;Q.C:J' t;Q.C~'fi ,.. 10
table clothes and similar articles. ......... 10
8,3 ht;Q.c:J' t;Q.C:" m.f,1}"
''''IP~
f.,.n;Jjf. A11(e'f ............................... 10 8.3 Garments """"'''''''''''''''''''''''''''''' 10
1Jt !lif.1)~ (1\) .u..t.~ ~:>t:" :>/1,11)4I1'C 1) ;M"tP' 1)1 4") Xitl]?; 'H'" Federal Negarit Gazeta - No.20 31It December, 2002-Page 2023 (8)

SCHEDULE
1P11O~1r
h 1 C CD-il'l' 0117.{/II~ -f:'i" hCD-"1'"mY. h 1 C CD-il'l' 0117.10- GOODS THAT SHALL BE LIABLE TO EXCISE TAX
fTml't.,. b:l',,"f I\y. fDthLA f11.h"'Y.lI :J"hil Ah WHEN EITHER PRODUCED LOCALLY OR IMPORTED
fh.h..,Y.lI :J"hil Excise Tax
f b:l' CD- ~ Y.
., ..,. ooo.y.~ (%) Type of Product Rate (%)

9, hmc:": h1lC'i" hlt./r'"f ""C-"f fTIP<;' 9 Personal adornment made of gold,

silver or other materials ,.......... 20
1.lfJ1.(1\"f ................................................. 20

10. "ootj ~f 0."" h1A..,/r''''' fDtIf.,. ..,01 10. Disk washing machines of a kind for
domestic use.................................................. 80
OI/mo.f ooh. 'i",,"f ................................... 80
11. Washing machines of a kind for
11. "ootj ~f 0."" h 1 A.., /r''''' fD7..lf.,. fA 11il
domestic purposes.. ....................................... 30
01/ m o.f 00 h. 'i",,"f ................................... 30
12. Video decks .................................................. 40
12.fiiJlf" ~h .............................................. 40
13. Television and Video Cameras ..................... 40
13. f*l:lt.ii1f1 "h'i"fiiJlf" t}1P1t.,,"f................ 40
14. Television broadcast receivers whether
14. T'" qy. *I:It.ii1r1: h.., t.0I/ G:1: h t-Jl f"
or not combined with gramophone,
my.1}" h.('l}",) 00:"~65L'i" OI/IPDtf oo..,~
radio, or sound receivers and
f,,"f ;JC fTlfJoo<;, 0.11'19" qY.1f19"......... 10
reproducers , . 10
15. "oo11Y.?f'"f 00=\=\"'- fDtIf.,. T1ihCt}~""f 15. Motor passenger cars, Station Wagons, utility
(hCD-.y.'l"o./r'"f) ""hil-t1i1 '1'11" fh1A cars, and Land Rovers, Jeeps pickups, similar
..,,, ,. ooh.'i",,"f 1\1.('c-iic-"f: j{T"f:
vehicles (including motorised caravans),
1:hhT"f "h'i""h"IL019" fool}l'tft- .,.1ihCt}
whether assembled, together with their ap-
~ ,,"f: q" 'l" TC t}t. Ii tj"f "1'"9"C f T.,lfJ m 00-
propnate initial equipment:
my.9" fAT.,moo- ooo]!oo~f fLoom
l\.tj t.TCD- hOlJ..1 q CD-00'" ~f ;JC 15.1 Upto 1,300 C.c. ................................... 30
15'1 "hilh 1,300 fl ...................... 30
15.2 From 1,301 C.c up to 1800 C.c. .......... 60
15.2 hl,301 fL.fL. Ol\y. "hilh 1,800
fl. fl. ............................................ 60 15.3 Above 1,800 C.c ................................. 100
15. 3 h 1,800 fl. fl. Ol\y... ............. 100 30
16.Carpets .. ............................
16' f(JJ"A 9"1lfJG:"f ...................................... 30
17. Asbestos and Asbestos Products .................. 20
17 fhilll.il.y.il'i" fhilll.il.,.il CD-m..y."f ............. 20
20 18. Clocks and watches ...................................... 20
18. fm~A.If: f"'.(''''~'i'' f"h~ I't~.y."f ...............
19. h i'f11-l\. .y."f'i" ooftl,tD;F,,"f ...................... 20 19. Dolls and toys ............................................... 20