Key provisions include mandatory production accounting systems on all licensed production lines, electronic excise declarations, and real-time tracking of goods from factories to distribution points.
The directive also empowers the Tax Authority to impose stringent penalties, including double the unpaid tax and possible revocation of licences for non-compliance.
Tobacco, alcohol, salt, and other excisable goods cannot be transported without tax clearance or proper documentation, except under tightly regulated exemptions for export, duty-free sales, or diplomatic use.
The directive applies to both licensed and unlicensed entities handling excisable goods or services, closing long-standing loopholes in tax avoidance and under-declaration.
Experts see the reform as a decisive step toward revenue modernisation, echoing Ethiopia’s broader fiscal reforms to expand the tax base and tighten compliance in key consumer markets