Capital Ethiopia Newspaper

ERCA agrees to lift double taxation on salt

The Ethiopian Revenues and customs Authority (ERCA) has agreed to lift the double excise taxation that was imposed on the salt production industry in Ethiopia. For a long time Ethiopian domestic salt has been non-iodized but in 2009, after a huge campaign, iodizing began in the salt industry. However a double excise tax began to be imposed on the salt industry after this occurred.
According to the Excise Tax Proclamation No. 307/2002, both locally produced and imported salt are subjected to a 30 percent excise tax. And the local salt industry incorporates iodized and raw salt productions, both falling under the excise tax bracket. However, iodized salt uses the raw tax production as an input, resulting in double taxation. The issue was raised at the first federal Public-Private Consultative Forum (PPCF). At the time, ERCA officials assured the industry players that it will be investigated and measures would be taken if necessary. It was one of the issues pending for the next forum.
(The Ethiopian Reporter)