The House of Representatives reviewed a bill proposing changes to the export tax incentive system. The amendment aims to boost industrial growth and foreign currency acquisition by empowering the executive branch with time limit adjustments and reducing penalties for unused imported raw materials.
While acknowledging the reform’s potential benefits, council members raised concerns about the significant tax penalty reduction from 50% to 10%. They urged a thorough investigation by the standing committee to understand the rationale behind this change.
The committee was also tasked with exploring alternative incentive options. This follows a detailed study of the current system’s effectiveness, highlighting the need for adjustments. Councilors emphasized the importance of safeguarding valuable resources while supporting investors and the national economy.
Source: Addis Zemen
