A recently submitted draft proclamation for the formation of the National Bank of Ethiopia (NBE) has revoked the Ministry of Finance’s (MoF) authority to allow franco-valuta imports, transferring this responsibility solely to the central bank.
According to the draft bill, the NBE will now be in charge of overseeing franco-valuta imports, with the amended Regulation No. 88/2003 – which previously permitted the MoF to approve such imports – set to be abolished.
Specifically, Article 39.5 of the draft proclamation states that “goods shall be imported on a franco-valuta basis, subject to the terms, circumstances, and conditions determined by the National Bank’s Directive.”
The proclamation also includes a clause exempting the central bank from all property taxes, including urban house tax and urban land rent.
This tax exemption comes despite the Addis Ababa City Administration’s previous requests for the NBE to fulfill its obligations regarding these levies.
However, the recent proclamation has clarified that the central bank will not be responsible for the specified taxes and levies, solidifying its exempted status.
The transfer of franco-valuta authority to the NBE and the central bank’s tax-exempt status are significant changes that are expected to impact Ethiopia’s import regulations and the financial operations of the country’s monetary authority.
Source: Capital Ethiopia
