Ethiopia wants to impose up to a 500% excise tax on second-hand car imports in a bid to help its struggling domestic auto sector.
Ethiopia’s auto market is dominated by imported second-hand cars, and lawmakers hope the tax increase will help boost domestic production. Automakers like Lifan, Hyundai, and Volkswagen manufacture less than 12,000 cars a year in the country. The second-hand market is nearly three times that number, according to government figures.
The proposed tax would be based on age and engine size. For...