Title: Ethiopia Excise Tax Proclamation No. 1186/2020

Scope of Application:  Excise tax shall be levied on:

1). Goods manufactured in Ethiopia by licensed manufactures;

2). Excisable goods imported into Ethiopia (by importer);

3). Excisable Services supplied in Ethiopia by the registered person.

And the following goods and services are not liable to excise Tax:

a) exempted goods which meet the conditions set out in the Second Schedule;

b) excisable goods exported under customs control, including those stored in the approved warehouse;

c) excisable services exported from Ethiopia;

d) excisable goods that the manufacturer has destroyed, with the prior written permission of the Authority, under the supervision of the officers of the Authority prior to their removal from the factory in which they were manufactured;

e) excisable goods and services that are supplied to entities that are exempt from excise tax by law;

f) goods and services exempted from excise tax by the Minister due to economic, social and administrative reasons;

g) denatured alcohol produced in a manner that it cannot be used for human consumption;

h) excisable goods that have been lost or destroyed by accident or other unavoidable cause:

(1) in the course of removal of the goods by the manufacturer from the manufacturer’s factory including when loading or unloading the goods;

(2) in the factory of the manufacturer in which the goods were manufactured before removal from the factory;

(3) on board an aircraft or vessel prior to importation into Ethiopia.

Type of law: Proclamation

Key words:  liability for excise tax; imposition of excise tax; obligation to pay excise tax; timing of liability for excise tax; goods and services not liable to excise tax; excisable value; adjustment for inflation; ex-factory selling price of excisable goods; quantity of excisable goods; place of supply of excisable services; relief for raw materials; application for a license; issue of licenses; form of license; obligations of licensed person; suspension and cancellation of licenses; consequences of suspension or cancellation of license; authority to notify licensee prior to suspension, revocation or cancellation of a license; appeal; excisable goods under excise control; obligations of licensed manufacturer in relation to excisable goods under excise control; keeping or use of still otherwise than by distiller or rectifier prohibited;  deemed removal of excisable goods; excise stamps and other markings; excisable goods subject to a refund liable for excise tax on disposal or inconsistent use; exempt excisable goods liable for excise tax on re-importation or purchase; exempt excisable goods liable for excise tax on disposal or inconsistent use; application of tax administration proclamation; record keeping; excise tax returns; payment of excise tax; offenses and administration penalties

Entry into Force: March 17, 2020

Implemented by: —

Repealed? No

Language: Amharic and English