The Ministry of Finance decided to exempt tax and tariffs levied on some basic food commodities in an effort to control inflation and stabilize the market in Ethiopia.

September 7, 2021

Eyob Tekalegn, the State Minister of Finance, told reporters on Sept 03 that the decision was made in order to contain rising inflation and stabilize the market.

Wheat, edible oil, sugar, and rice are the only commodities that completely tax and tariff-free.

According to the ministry, value-added tax has been removed on eggs, spaghetti, and macaroni.

According to a study, the government will lose billions of Birr as a result of the decision, which will be imposed for an undefined period.

To boost people’s purchasing power, the ministry has recently taken monetary, fiscal, and structural reforms.

Eyob has stated that the administration is determined to taking similar actions in the future if they are considered necessary.

To keep the soaring inflation under control, the minister stated that the government will try to improve productivity, particularly in the agricultural sector, increase supply, monitor the market system, and make fiscal policy decisions.

The Ethiopian government has renewed the Franco-Valuta License permission to import basic products without foreign currency for the next six months, in addition to acquiring and distributing consumer items like wheat and edible oil.

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