Overview

This proclamation establishes an Export tax on raw and semi-processed hides and skins to encourage domestic value addition rather than exporting unprocessed materials.

Key words and Phrases

Raw hides and skins, Semi-processed hides and skins, Export tax, Wet blue cow hides, Wet blue sheep skins, Wet blue goat skins, Pickled sheep skins, Chrome tanned, Fat-liquored, Dried, Value addition, Domestic processing, Export incentive, Leather industry, Tanning operation

Key Provisions

Purpose: To discourage exporting hides and skins without adding significant value, and to incentivize industries to process these materials domestically before export.

Taxable Products:

1. Raw hides and skins
2. Wet blue cow hides
3. Pickled sheep skins
4. Wet blue sheep skins
5. Wet blue goat skins

Tax Rates (based on value):

• Raw hides and skins: 150%
• Wet blue cow hides: 20%
• Pickled sheep skins: 10%
• Wet blue sheep skins: 5%
• Wet blue goat skins: 5%

Administrative Framework

• Payment: Tax must be paid before export, upon completion of customs formalities
• Collection: Ethiopian Customs Authority handles collection
• Ministerial Power: The Minister of Finance and Economic Development may increase rates or grant full/partial exemptions

Important Notes

• Any conflicting laws/regulations are superseded by this proclamation
• Effective date: February 19, 2008

The proclamation uses a progressively lower tax structure to encourage more processing, with the highest rate (150%) on completely raw materials and the lowest rates (5%) on more processed products.