Bloomberg Tax
Free Newsletter Sign Up
Bloomberg Tax
Welcome
Go
Free Newsletter Sign Up

Ethiopia May Lower 33% Sugar Excise Tax to Attract Investment

Dec. 4, 2019, 11:40 AM

Ethiopia may reduce a 33% excise tax levied on sugar produced locally to attract fresh investment as it liberalizes the sector.

“The excise tax is increasingly making domestic production uncompetitive,” according to a draft Finance Ministry policy document. “There is room for the domestic excise tax to be adjusted,” it said on its website, without indicating by how much.

The government will recoup its revenue loss with income from increased production by new factories, according to the document.

Ethiopia’s sugar demand is expected to more than triple over the next decade to 2.5 million tons, according to data from state-owned ...