The Addis Ababa City Council has ratified Regulation No. 204/2026 imposing a 5 percent municipal tax on hotels and other lodging establishments in the capital. Revenue will support infrastructure and tourism projects. The tax applies to room tariffs excluding VAT and auxiliary services.
The Addis Ababa City Council has ratified Regulation No. 204/2026 imposing a 5 percent municipal tax on hotels and other lodging establishments in the capital.
The rule covers one- to seven-star hotels as well as unrated lodges, resorts, pensions and guesthouses. It is calculated only on the daily room tariff and excludes VAT plus services such as food, beverages and spa treatments.
The Revenues Bureau will enforce compliance. All operators must register, keep visitor registers and update receipts to show the new tax line. Category A taxpayers file monthly while Category B taxpayers file quarterly. Late payments incur penalties up to 50 percent and intentional fraud can lead to criminal prosecution.
Revenue will fund urban infrastructure, new tourist attractions and public recreational spaces.
