KEYIR NEWS - Notable among the key recommendations raised during a recent public consultation on the draft Federal Income Tax Amendment Bill were calls to adjust the income tax threshold in line with inflation, with several participants proposing that the minimum taxable income begin at 5,000 birr to more accurately reflect current cost-of-living pressures.
Further proposals emphasised the need for targeted tax concessions for persons with disabilities, alongside a call for bespoke tax policies sensitive to the realities of specific professions and business sectors.
The forum, convened by the Standing Committee for Planning, Budget and Finance Affairs, drew a wide cross-section of stakeholders, including representatives from the Ministry of Finance, regional revenue bureaus, business councils, and civil society organisations.
Desalegn Wedaje, Chair of the Standing Committee, noted that the proposed bill seeks to strike a careful balance, enhancing government revenue while responding to the developmental needs and socio-economic concerns voiced by the public. He acknowledged the persistent calls from taxpayers to revisit high tax rates, but cautioned that any adjustments must be informed by rigorous policy analysis.
Echoing the need for legislative diligence, Abraham Alemayehu (PhD), Deputy Chair of the Committee, highlighted the importance of ensuring that the revised tax code adequately protects both citizen and state interests. He called for close examination of areas such as taxpayer segmentation, accounting documentation requirements, compliance standards, and the treatment of cash transactions.
He further stressed the importance of crafting legislation that is both administratively feasible and socially equitable, given the broad socio-economic spectrum the law must cover.
Responding on behalf of the executive, Fikadu Horeta, Minister of State for Finance, stated that the amendment bill had undergone extensive stakeholder engagement, aimed at ensuring fairness in taxation, encouraging compliance, and supporting the nation’s economic development agenda.
The consultative forum also featured contributions from the Ethiopian Federal Bar Association, the Confederation of Ethiopian Trade Unions, the Ethiopian Association of the Blind, and various regional and sectoral stakeholders.