Nation Exempts Tax, Tariff Levied on Some Food Commodities to Control Inflation

Ministry of Finance announced that it has passed a decision to exempt tax and tariff levied on some basic food commodities in an effort to control inflation and stabilize the market in Ethiopia.

During his presser today, Finance State Minister Eyob Tekalegn told journalists that the ministry has passed a decision to exempt tax and tariff levied on imported and locally exchanged basic food commodities effective today in an effort to control the increasing inflation and stabilize the market.

The government decided to exempt the tariff and tax even though this could bring income loss to the government, he noted, adding that the decision will benefit the people.

The commodities on which tax and tariff are fully exempted are wheat, edible oil, sugar and rice.

Value added tax on egg, spaghetti and Macaroni have also been exempted, it was learned.

Citing a study, the state minister said the government will lose billions of Birr due to the decision to be implemented for unspecified duration.

According to Eyob, the government has been taking monetary, fiscal and structural measures to increase the purchasing power of the people and is committed to continue doing so whenever necessary.

Improving productivity, especially in the agriculture sector, increasing supply, checking the market system and fiscal policy decisions are among the key actions the country is focusing on to sustainably control the increasing inflation.

The government has also purchased 10 million quintals of wheat that are being transported from Djibouti.

Sugar required for the next Ethiopian year is purchased and edible oil sufficient for 2 months is under distribution to increase supply of basic food commodities and stabilize the market, the state minister reveled.

Moreover, the government has extended the Franco-Valuta License permit to import basic goods import without foreign currency for the next six months.

Source: Ethiopia News Agency