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Ethiopia Mulls a 500% Tax Hike on Second-Hand Car Imports

Dec. 27, 2019, 2:27 PM

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 ...