Inflation considerations delays income tax reform
The Ministry of Finance and Economic Development (MoFED) is said to have halted the revision of Ethiopia's income tax structure following advice from Prime Minister Hailemariam Desalegn's macroeconomic team on the inflationary implication of rolling out the tax amendment so close to when the government gave its employees a pay bump. According to The Reporter's sources, the PM's macro-economy advisory team recommended exercising some precaution when thinking of introducing the revision made on the income tax structure mainly for the inflationary pressure it might have when coupled with the salary increment. As per the suggestion of the advisory team, MoFED delayed the tax revision proposal submitted to it by the Ethiopian Revenues and Customs Authority (ERCA) two years ago. After conducting a thorough assessment of the country’s tax schedule, ERCA proposed a general tax reform affecting many of the tax proclamations including the Customs Proclamation, which