Ethiopia's Ministry of Finance has approved income tax exemptions for investors registered in free trade zones who supply inputs and products to the domestic market. The measure seeks to address challenges hindering industrial growth.
Addis Ababa, May 5, 2018 EC. Ethiopia's Ministry of Finance stated in a press release that investors registered in free trade zones and supplying inputs and products to the market will be exempt from income tax.
The ministry noted that capital shortages hindering domestic industry growth, input supply challenges, and skilled labor shortages are gradually easing, leading to job creation. The free trade zone system allows importation of inputs and products without duties or taxes, with payments due upon domestic sale.
This incentive aims to attract more investors to trade zones, according to the ministry. Interested parties can contact the ministry by phone to register in free trade zones.