The European Chamber in Ethiopia (EuroCham) has unveiled its policy paper for the fourth time, aimed at improving tax administration in the country. One notable provision in the policy is the requirement for companies to deposit 50 percent of the tax amount in dispute when filing an appeal with the Federal Appeals Commission.

Under the current system, taxpayers must submit a deposit equal to half of the original tax amount to appeal to the Commission. However, EuroCham’s policy proposes that companies must deposit 50 percent of their tax liabilities to lodge complaints with the Ethiopian Federal Appeals Commission, seeking resolution for their tax concerns.

Expressing concern, the document suggests that this requirement may jeopardize the sustainability of businesses. Survey results indicate that the business community advocates for reducing the deposit amount to 20 percent.

Bahru Temeseng, Director of EuroCham in Ethiopia, warned that failure to meet deposit obligations could lead to business closures, especially when claims exceed available cash and capital reserves.

Moreover, the policy highlights discrepancies in tax audit outcomes, with cases approved in one round often rejected in subsequent rounds within the same tax office. Temeseng emphasized the challenges faced by both taxpayers and auditors in preparing tax reports and conducting audits.

The policy document proposes recommendations to enhance Ethiopia’s tax administration system, emphasizing the need for fair and transparent tax management processes. Among the top recommendations is the reduction of the required deposit amount for tax complaints.

Established in 2012, EuroCham represents the European business community in Ethiopia. With 180 members, it operates as an independent association holding an investment license in Ethiopia.

The upcoming Tamirt Expo in Ethiopia is set to create significant market opportunities, with expectations of generating over 3 billion birr in market connectivity. The Ministry of Industry has announced that more than 200 industries will participate in the event, which will span five consecutive days starting from May 9, 2024.

Tarekegn Bululta, the Minister of State for Industry, stated that manufacturers involved in various sectors such as leather and leather products, textile and garment, wood, construction, automobile and machinery, electronics, and electrical industries will be actively participating in the program.

Anticipating a large turnout, the minister mentioned that more than 50,000 visitors are expected to attend, including embassy officials, foreigners, technical and vocational students, as well as higher education institution students. Additionally, a photo exhibition showcasing the manufacturing industry’s history will be presented as part of the event.

The development of the exhibition and bazaar has involved 16 industries, and discussions on topics such as finance, strategy, and infrastructure are scheduled to take place throughout the five-day event.

The Ministry of Trade and Regional Integration has drafted a national e-commerce strategy aimed at boosting trade and export revenue. Developed with assistance from the Tony Blair Institute, the strategy is expected to be implemented at the beginning of the upcoming fiscal year.

Deputy Prime Minister Temesgen Tiruneh highlighted that enhancing Ethiopia’s commercial competitiveness globally is a key objective of the e-commerce plan. He emphasized the potential for business expansion in the digital economy and e-commerce, stating that e-commerce will further open up the economy to foreign players and contribute to sector growth through a legally mandated structure.

The strategy outlines three flagship initiatives: the establishment of an Ethiopian e-commerce platform, a regulatory sandbox, and rural e-commerce. It aims to ensure sector development through a conducive regulatory framework, increased private sector involvement, and enhanced export earnings.

The plan revolves around eight pillars, including the legal and regulatory framework, enabling systems, infrastructure, digital platforms, and talent development. Additionally, it recognizes the importance of transportation, logistics, delivery services, access to financing, and national identification for e-commerce growth.

The strategy proposes improvements in regulatory domains such as consumer protection, tax, and customs systems. It anticipates that e-commerce will lead to job creation, service sector diversification, and increased private sector activity. Simplifying the traditional method of exporting commodities is also on the agenda to boost export revenues.

During stakeholder engagement sessions, experts suggested prioritizing main export commodities for the e-commerce plan, citing the success of Ethiopian coffee exports through e-commerce as an example.

The Council of Ministers expects to review the strategy before the fiscal year concludes.

The International Air Transport Association (IATA) called for urgent action to deepen the understanding on the formation and climate impact of aviation contrails to develop effective mitigation measures. The newly released IATA report Aviation Contrails and their Climate Effect: Tackling Uncertainties and Enabling Solutions calls for a strengthening of collaboration between research and technological innovation, coupled with policy frameworks to address aviation’s non-CO2 emissions through more atmospheric data.

The report, which was developed through collaboration between industry, governments, universities, and research institutions, sheds light on the significant impact of contrails on global warming and outlines potential measures to minimize their effects.

Contrails, the visible trails left behind by aircraft in the sky, have long been recognized as a contributor to climate change alongside carbon dioxide (CO2) emissions. When formed in ice-supersaturated regions, contrails can transform into cirrus clouds, which both reflect incoming solar radiation during the day and trap outgoing heat. These persistent contrails have a warming effect on the climate, with variations depending on factors such as time of day, season, and geographical location.

The report acknowledges the complexity of contrail science and highlights the existing gaps in understanding the formation, persistence, and climate impact of contrails. Despite extensive research, predicting individual contrail formation and assessing their precise climate impact remains challenging due to uncertainties and limitations in data collection and atmospheric modeling.

To address these challenges, the aviation community is actively engaged in researching ways to minimize the warming impacts of contrails. The report emphasizes the importance of strengthening the synergy between research, technological innovation, and enabling policy frameworks to effectively reduce aviation’s climate footprint.

The report highlights various initiatives and trials aimed at reducing contrail formation. Collaboration among meteorologists, climate researchers, airlines, and aircraft manufacturers has provided valuable insights into contrail formation. However, it has also underscored the need for enhanced data collection and addressing air traffic network complexities. Trials involving modified flight paths and alternative fuels have shown potential in mitigating contrail formation but are limited by the variability of atmospheric conditions and the localized nature of contrail occurrences.

Technological advances, particularly in the development of humidity sensors on aircraft, are proposed as critical for improving contrail prediction and avoidance strategies. While the current sensor technology on commercial aircraft lacks the required sensitivity and response time, ongoing research aims to develop more accurate and robust solutions. By installing sensors on a limited number of aircraft, it would be possible to collect high-resolution, real-time data on atmospheric conditions, thereby improving numerical weather prediction models.

The report concludes with a series of recommendations for short, medium, and long-term approaches to address the climate impact of contrails. In the immediate term (2024-2030), reducing CO2 emissions takes precedence over uncertainties in contrail detection and climate impact. Mid-term actions (2030-2040) include establishing standards for data transmission, continuous model validation, and encouraging aircraft manufacturers to incorporate provisions for meteorological observations. Longer-term actions (2040-2050) focus on increasing the world fleet providing data and gaining a comprehensive understanding of the non-CO2 effects of alternative fuels.

The aviation industry and its stakeholders are committed to addressing non-CO2 emissions and mitigating their impact on climate change. The report emphasizes the need for ongoing research, experimentation, and collaboration to bridge the existing knowledge gaps and implement effective measures. By strengthening the synergy between technological innovation and regulatory frameworks, the aviation community aims to reduce its climate footprint while advancing scientific understanding and technological capabilities.

As the urgency to combat climate change grows, the aviation industry stands ready to play its part in minimizing the environmental impact of contrails and ensuring a sustainable future for air travel.