The Ethiopian government is set to implement additional taxes on real estate and vehicles, as outlined in the latest Home Grown Economic Reform documents. This new real estate tax will complement the existing property tax legislation currently undergoing legal and administrative procedures, with implementation slated for either 2024 or 2025.
It’s worth noting that last year saw significant increases in taxes such as the roof and wall tax, as well as the property transfer tax, which reportedly contributed to the downturn of the real estate sector, according to analysts. Following public outcry from citizens and developers, the property transfer tax was recently reduced by 34%.
Details regarding the new vehicle tax, including whether it will be an annual levy or a one-time fee during ownership transfer, are currently unavailable.
Experts speculate that these tax initiatives are driven not only by the government’s aim to boost domestic tax revenue but also to meet the requirements of international financial bodies like the IMF and World Bank, potentially to secure financial assistance.”
Editor