I 


 


  
FEDERAL NEGARIT GAZETTE
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA

w =c=x 7K -." yr 26th Year No. 25

A = A% Km B `E 5065 7.! I 
 
  ADDIS ABABA 17th March, 2020

  !" # $%&


'() Content

A+, -." /0/123/5065 7.! Proclamation No. 1186/2020

9:; <= A+, ……………...?@ 65051AB The Excise Tax Proclamation ……Page 12278

A+, -." /0/123/5065 PROCLAMATION No. 1186/2020

9:; <= A+, EXCISE TAX PROCLAMATION

9:; <=
C%D(E EGH 7; WHEREAS, it has become necessary to review
EE ?J KLM 
NEO EGH JD( the type of goods on which excise tax has been
P%QR
STUVE WJ PXY EJ
'S
 collected and impose the tax on goods and services
Z" P=[Q EE \! K]T< K^JD( that are believed to be luxury, hazardous to health,
!E
? L_<D( ';`E= EGH EJ causes social problems as well as on basic goods
A?Zab ; EE  'cTZ '=LCde which are demand inelastic;

'!Tf g ; U
T(
9:; WHEREAS, it is believed that replacement of the

<= h
Ki) + EE  K Td <= current excise tax which was assessed on production
[h [jQ P?% <= ?'  T?c cost by ex-factory price will alleviate the problem
encountered by taxpayers due to lack of predictability
.'D(
T(E Z"
PG K^k
on the amount of tax they are liable to pay;
=C<Ke

l
;
T(
9:; <= A+, WHEREAS, to overcome the problems
%Q dcCb !E
9:; <=E encountered in collecting proper excise tax due to
 KUU T?c $K(E Z" shortcomings in the current excise tax proclamation,
KNTj
P=  A+, '( ?m ^n it has become necessary to introduce a new law that
K?ope puts in place a system which alleviates problems so
far encountered;
I 
 P
  NOW, THEREFORE, in accordance with
? KEZl AE`@ qr(/) EJ (6/) K]T Article 55(1) and (11) of the Constitution of the

P[C( <(uvv Federal Democratic Republic of Ethiopia, it is
hereby proclaimed as follows.

ÃNÇ êU nU¶T Uz¤È ±.œ.q.Ü *¹þ1

Unit Price Negarit G. P.O.Box 80001
?@ 65051A‘

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12279

!E
j AEc CHAPTER ONE

$N GENERAL
/. Az" "E= 1. Short title
;{ A+, “
9:; <= A+, -." This Proclamation may be cited as “the Excise
/0/123/5065” a $`= ; vv Tax Proclamation No. 1186/2020.”

5. "~ 2. Definitions

GQ A?% € "d!
PU$( ^ Unless the context otherwise requires, in this
=`" { A+, (=.:- Proclamation:

// “A(„…E” 'C UH E ;! EGH E 1/ "Aircraft” means every description of

A
"
P~d 'JD(! 7; '~~† conveyance by air of human beings or goods.
(vv
5/ “ZE‡ €D( UH K[
P TZ 2/ "Arm's Length Transaction” means a
Z;” 'C \C UH K[ transaction between persons dealing with
Cx
? +
P TZ Z; (vv each other at Fair, Market Value.

ˆ/ “CU( A?Za
';(” 'C 3/ "Denature” means to render unfit for human
K$. CUH A?Za EE‰;( consumption for drink.
 "X
]
(vv

Š/ “
A‹ ' h” 'C A‹ 4/ “Distillery” means a licensed distiller's

C'!T LGc
U$( h (vv factory.

r/ “
d!Œ `T.” 'C ?m EGH ; 5/ “Customs Duty” means customs duty, surtax

C
d!Œ `T.R " <= ;! € or any other similar tax imposed on the
importation of goods.
K::; `T. (vv
3/ “
L` C
EG KŽE” 'C
<= 6/ “Bonded Warehouse” means the building or
%ClE PLN ( K]T
P$NJ place destined for storage of specified goods

9:; <= [LC EG before the tax is paid and secured in accordance
with the requirements of the Tax Authority.

P`K. # ;! lj
(vv

/ “
9:; <=
P[L/
C EG” 7/ “Excisable Goods" means the goods

'C [{ A+, " Ž( ]E$T / specified in Part I of the First Schedule.
j /
ŽTŽŒ EGH JD(vv
B/ “
9:; <=
P[L/
C 8/ “Excisable Services" means the services
A?Za” 'C [{ A+, " specified in Part II of the First Schedule.
Ž( ]E$T / j 5
ŽTŽŒ
A?Zab JD(vv

‘/ “
9:; <= ;! <=” 'C { 9/ “Excise Tax or Tax” means the excise tax
A+,
C( <= (vv imposed under this Proclamation.

6/ “[< ’
^k EGH ” 'C [{ A+, 10/ “Exempt Goods” means goods specified in
" Ž( ]E$T 5
KC[p the Second Schedule.
EGH JD(vv
6// “ (z A?" K” 'C AEcE EG 11/ “Export” means to take or cause to be taken
[I  (z A?" ;! from Ethiopia to a foreign country, or to an

9=“" !"b  PKTp ”E export processing zone.
K (vv
?@ 650512

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65/ “
9=“" !"b
PKTp ”E” 'C 12/ “Export Processing Zone” means a zone
C(z ?
P`"V !"b
PKTp designated as such by the Management Board
IE•=KE –"c
PU
! ”E (vv of the Ethiopian Investment Commission.

6ˆ/ “h” 'C LGc
U$( A!

13/ “Factory” means any premises at which a

9:; <=
C%D(E EGH licensed manufacturer is licensed to

PK" ;!
P['  lj
manufacture and store excisable goods, but
^ER 9:; <=
C%D( EGH does not include any part of the premises
through which excisable goods are sold to the
C$GP( STU C?
P`"VE
public.
'JD(E!
A!
—E
l
–<
A;˜!"!vv
6Š/ “ A?" (=. '=?%” 'C EGH E 14/ "Import” means to bring or cause goods to be
[(z A?" EJ
9=“" !"b brought into Ethiopia from a foreign country,
[PKTp ”E  I '=?% a special economic zone or an export
;! EE ?V 'cTZ (vv processing zone.

6r/ “A=Kg” 'C 'JD(!  A?" (=. 15/ “Importer” in relation to goods, means the

P?V EGH %C#
^ U( ;! person who owns the goods, or any other
EGH— ;”<( l"
P?™ U( ;! person who is, for the time being, in
possession of or beneficially interested in the
EGH— ; .N! C( U( (vv
goods at the time of importation.
63/ “
9:; š!"” 'C
9:; <= 16/ “Excise Stamp” means a mark or an object

P[L EG
9:; <= affixed on excisable goods to indicate that

[LC K^kE C'T?.
PC$j Excise Tax has been paid on such goods;
! (vv
6/ “7C! A`j 
›” 'C A(„…EE 17/ “International Traffic”, in relation to an
PKC[ I (=. [AEc –< aircraft means any operation of the aircraft
 € –<
P T?(E T
:;˜!" except as between two places in Ethiopia.
A(„…kE CA
" T
.N! ; '+
(vv
6B/ “LGc” 'C
9:; <= 18/ “License” means in case of excisable

C%D(E A?Zab PKC[ services, the certificate of registration or in

!?%
!=" T` ^ER
9:; case of excisable goods, the license, issued
<=
C%D(E EGH PKC[ under Article 17 of this Proclamation.
E{E EGH C'!T { A+,
AE`@ 6 K]T
PU. LGc (vv
6‘/ “LGc
U$(
A‹ A!
” 'C 19/ “Licensed Distiller” means a distiller licensed
{ A+, AE`@ 6 K]T LGc under Article 17 of this Proclamation.

U$( A‹
PK" U( (vv
y/ “
L` C A!
” 'C
9:; 20/ “Licensed Manufacturer” means a person
<=
C%D(E EGH
PK" licensed under Article 17 of this Proclamation
{ A+, AE`@ 6 K]T LGc to manufacture excisable goods.

U$( U( (vv

y// “'!T” 'C:- 21/ “Manufacture” includes:

œ)
9:; <=
C%D(E EGH a) the production of excisable goods;
'!Te
?@ 650512/

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12281

C)
9:; <=
C%D(E EGH b) any intermediate or uncompleted process

'!T   'JD(E! ZA in the production of excisable goods; or
;! [›
$J`` !"
'!Te ;!

ž) A‹E '
R 'ŸŸR CPLC?( c) the distilling, rectifying, compounding,
A?Za 'Ž R CU( A?Za or denaturing of spirits.
EE‰;( 'cTZE ;˜!
vv

y5/ “'ŸŸ” 'C
A‹ K$O E 22/ “Rectify” means to redistill spirits removed
[PK" h
A‹ K$.E from a spirits receiver for the purpose of
KT[ EE ?J '
 ;! ¡ purifying or adding flavor.
E! EE <[ 'cTZ (vv

yˆ/ “
A‹ K$.” 'C 'Ex(! 23/ “Spirits” means any drink with zero point

A‹ ;Žp [„ . A!= Kb five percent (0.5%) or more alcohol volume.
([„ . r Kb) ;
^
K$.
7; (vv

yŠ/ “
A‹ ' K¢” 'C 24/ “Still" means a distilling apparatus and
[I %{ EGH (z A‹E includes any part of a still.
C'!T
P?CZ K¢ ^ER

{E K¢ A ;˜!
vv

yr/ “CA(„…E KE? £
P( EG” 25/ “Stores" means goods for use or
consumption by passengers or crew on an
'C A(„…E
P~~¤ KE? £
aircraft or ship while in international traffic,
EE $`¥ ;! Cj¦<
and includes goods for sale on board such
EE (Q 7C! A`j 
› ;
aircraft or vessel.

P?™ A(„…E (=.
) EG
^ER A(„…E (=. CKE? £

Pi.E EG ;˜!
vv

y3/ “ A?" (=. ?V
P% _” 26/ “Time of Importation” has the meaning
assigned to it under Article 4 of this

PC( œ?" { A+, AE`@ Š
Proclamation.

U$( "d! ;nT+vv
y/ “
˜' E§ <=” 'C ˜' 27/ “Value Added Tax” means the Value Added
E§ <= A+, -." 512r/6‘1¨Š Tax Proclamation No. 285/2002.

C( <= (vv
28/ “Person” means a natural or juridical
yB/ “U(” 'C
L.„ U( ;! Z
person.

U( K
U$( U( (vv
29/ “Authority” means the Ministry of Revenue
y‘/ “
<= %ClE” 'C
?mH
or Tax Authorities of the Regional
P©=š" EE \!

Q EJ
[' Governments and City Administrations.
A=‰ „
?m U:m A JD(vv

ª/ “P©=š"” EJ “P©="” 'C EE N ! 30/ “Minister” and “Ministry” means the

[Q
?EŽ P©=š" EJ
?EŽ Minister of Finance and the Ministry of
Finance, respectively.
P©=" (vv
ª// “A+,” 'C
9:; <= A+, (vv 31/ ‘Proclamation” means the Excise Tax
Proclamation.
?@ 6505125

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12282

ª5/ “
<= A=‰ " A+,” 'C
<= 32/ ‘Tax Administration Proclamation” means Tax
A=‰ " A+, -." ‘02ˆ/50B (vv Administration Proclamation No. 983/2016.

ªˆ/ <= A=‰ " A+« CGJ žT¬ 33/ Unless defined otherwise in this

U$( "d! { A+,
C
Proclamation the terms and phrases defined
"d! U$( =`" C{ A+,! in the Tax Administration Proclamation
L’P ;^Jvv shall also apply to this Proclamation.

ªŠ/
ªŠ/ 'Ex(! Ec ­<
?C®(
§E! 34/ any expression in the masculine geneder
­< ;˜!
vv includes the feminine.

ˆ. Cx
? + 3. Fair Market Value

// AEc
U _
9:; <= 1/ The fair market value of excisable goods or

C%D( EGH ;! A?Zab services at a particular time is the price that
Cx
? + (
P%C( E _ the goods or services would reasonably be
ZE‡ €D( UH K[ ¯ expected to fetch in an arm's length

,! Z; EG( ;! A?Zap transaction at that time at the wholesale level.
=?™ ;  a
P$`( + (vv

5/ { AE`@ EU= AE`@ (/) K]T 2/ If the open market value of excisable goods
AEc
U _
9:; <= or services at a particular time cannot be

C%D(E EGH ;! A?Zab determined under sub article 1 of this Article,
Cx
? + 'N fC EE ^ the fair market value shall be the price which
is an objective approximation of the price of


<= A=‰ " A+, AE`@ ˆ
the goods or services according to Article 3
cE± K]T
EG( ;!
A?Zap
of the Tax Administration Proclamation.
Cx
? + ;UJvv

Š. A?Za `"² ;! EGH  A?" 4. Time of Supply or Importation

(=. ?+
P% _ 1/ The time of importation of excisable goods
//
9:; <=
C%D( EGH may be one of the following:
 A?" (=. ?V
P% _
[P[Q \³<H AEY ^E ; :-

œ) CA?" (=. j¦<
P(Q
9:; a) for excisable goods cleared for home use
<=
C%D( EGH [d!Πdirectly at the port of importation or
 – ´R  A?" (=.
TN goods entered for removal to an inland
station and there cleared for home use, at
 –
P~~¤ EJ
d!Œ µ"'¶E
the time of customs clearance;
 TN  
P$JN- EGH

d!Œ µ"'¶ P[JE _e

C)  A?" (=. [?V ·  L` C b) for excisable goods removed to a licensed

d!Œ KŽE
P~~¤
9:; warehouse subsequent to importation, at
<=
C%D( EGH CA?" (=. the time of final clearance from the
j¦< EE (Q L` C
d!Πwarehouse for home use;
KŽE
d!Œ µ"'¶E $JN-e

ž)
9=“" !"b [PKTp ”E c) for excisable goods removed from an

9:; <=
P[L%D( EGH export processing zone or special
CA?" (=. j¦< EE (Q P´ economic zone for home use, at the time
_e of removal for home use;
?@ 650512ˆ

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12283

K) € 'JD(! \³<
9:; <= d) in any other case, at the time the excisable

P[L%D( EGH  I goods are brought into Ethiopia.
?VR
5/
9:; <=
C
A?Za 2/ The time of supply of excisable services shall
AN"– [J
P%C( [P[Q be the earlier of:
` K( _ (:-

œ) A?Zap U$ `Ee a) the date on which the services are

performed;
C) CA?Zap
j K$
& IE¸;= b) the date on which the invoice for the
Ž  `Ee supply of the services is issued; or

ž)
A?Zap j ¥Q ;! [› c) the date on which payment for the supply
[LC `Evv of the services is received, in whole or
part.
!E
j \C CHAPTER TWO

9:; <=
KL Z¹<
LIABILITY FOR EXCISE TAX
r.
9:; <= =CK
5. Imposition of Excise Tax
// { A+,  ??( K]T
9:; 1/ Subject to this Proclamation, a tax, to be
<= a
P<N <= P[Q known as excise tax, shall be charged in
; .º:- accordance with the provisions of this
Proclamation on:
œ) L` C A!
I (=. a) excisable goods manufactured in Ethiopia

PKTp
9:; <=
C%D( by a licensed manufacturer;
EGH e
C)  I
P?V
9:; <= b) excisable goods imported into Ethiopia;

C%D( EGH e

ž) L` C A?Za Ug I c) excisable services supplied in Ethiopia by

(=.
PU´
9:; <= a licensed person.

C%D( A?Zab vv
5/ { A+, AE`@ ‘  ??( K]T 2/ Excise tax shall be charged at the rate
[A+« " Ž( ]E$T / specified in the First Schedule for the

ŽTŽŒ 9:; <=
P[L%D( excisable goods or services in force at the
EGH ]E$T» KC[(
'=[L time the liability arises for excise tax as
determined under Article 9 of this

9:; <= ;[L%D+vv
Proclamation.
3.
9:; <=
KL Z¹<
6. Obligation to Pay Excise Tax
[{ <
ŽTŽŒ { A+,
C(E The following Shall pay the excise tax imposed

9:; <=
KL Z¹< AC%D(:- under this Proclamation:
// I PKTp EGH ; 1/ on excise tax imposed on goods

C(E
9:; <=
L` C manufactured in Ethiopia the licensed
A!
e manufacturer;
5/  I P?V EGH ; 2/ on goods imported into Ethiopia the Importer

C(E
9:; <= A=Kg(e of the excisable goods;
?@ 650512Š

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12284

ˆ/ I (=. PU´ A?Zab ; 3/ on services supplied in Ethiopia by the

C(E
9:; <= A?ZapE registered person.
CK=$
KŽ?( U(vv

.
9:; <=
P[L _ 7. Timing of Liability for Excise Tax

//
L` C A!
I (=. 1/ The liability of a licensed manufacturer for
PK"<D(
9:; <= P[L%D( excise tax on excisable goods manufactured
EGH ;
KTp EGH [A!
— in Ethiopia shall arise at the time of removal
h P´ _
9:; <E of the goods from the manufacturer's factory.

KL Z¹< ;¼¼'vv

5/ C{ AE`@ AL½¾! L` C A!

2/ For the purposes of this Proclamation,
h (=. .N! ;
+Q EGH .N! excisable goods that are consumed in a
; +Q _ [h( EE ´ licensed manufacturer's factory shall be
treated as removed from the factory at the
;¿$
vv
time of consumption.
ˆ/
9:; <= C%D( A?Zab 3/ The liability of a licensed person for excise
;
L` C U(
Pn"
9:; tax on excisable services shall arise at the
<=
KL Z¹< A?Zap U$ time of the supply of the services.
_ ;¼¼'vv

Š/
9:; <=
P[L%D(E EGH 4/ The liability of an importer for excise tax on
excisable goods imported into Ethiopia shall
 A?" (=.
P=?% A=Kg P[C(
arise:
_
9:; <E
KL Z¹<
AC:-
œ) P©=Œ P( KK ¡ a) for petroleum products, at the time of
\³< L` =`"
‰, !"b importation unless under a directive to be
issued by the Minister special permits are
 A?" (=. P?V _e
granted;

C) € 'JD(!  A?" (=. P?% b) for any other excisable goods, at the time
EG ;
C(E
9:; <=R of importation.
EG(  A?" (=. ?%vv

r/
L` C A!
{ AE`@ K]T 5/ A licensed person shall pay the liability for
[j
P?%(E
9:; <= { excise tax arising under this Article, in
A+, AE`@ ª ŽTŽT( AÀ·E accordance with Article 37 of this
Proclamation;
KL ACe
3/
9:; <=
C%D(E EGH 6/ An importer shall discharge the liability for
 A?" (=.
P=?% A=Kg { excise tax referred to in Article 6 of this
A+, AE`@ 3 K]T [j
P?%(E Proclamation in accordance with Article 36
of this Proclamation.

9:; <= { A+, AE`@ ª3
ŽTŽT( AÀ·E KL ACvv

B. [9:; <= ’
 Td EGH EJ 8. Goods and Services Not Liable to Excise Tax
A?Zab

// { A+, €a AE`Á
 ??( 1/ Without Prejudice to the Provision of other

EE $` ^nR
P[Q [9:; Articles of this Proclamation no excise tax
<= ’  "?+vv shall be charged on the following:
?@ 650512r

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12285

œ) [{ A+, " Ž( ]E$T 5 a) exempt goods which meet the conditions

KC[pE \³<H
PÂQ set out in the Second Schedule;
EGH e
C)
L` C
EG KŽEE ˜!„ b) excisable goods exported under customs
%Clk -.." l" ^( C(z control, including those stored in the
?
P`"V EGH e approved warehouse;

ž) [I (z
U´ A?Zab e c) excisable services exported from

Ethiopia;

K) [< %ClE A=`c U$ d) excisable goods that the manufacturer has

@Ãj LGc K]T
< %ClE destroyed, with the prior written
]
£ ?‡ [KTp h permission of the Authority, under the
[K(<D( › A!
— [.N! supervision of the officer’s of the
(z EE ^k
 Td
9:; <= Authority prior to their removal from the

C%D( EGH e factory in which they were manufactured;

]) [9:; <= ’
K^E K e) excisable goods and services that are
D( A
Pi´ 9:; <= supplied to entities that are exempt from

C%D( EGH EJ A?Zab e excise tax by law;

T) CI‹nPR C'{
J CA=‰
 f) goods and services exempted from excise
!Eb P©=Œ [9:; <= tax by the Minister due to economic,
’
 Td EGH e social and administrative reasons;
U) C!J A?Za EE ( CU( g) denatured alcohol produced in a manner
K$. A?Za U. ';  that it cannot be used for human
AÀ·E
KT A‹e consumption;

i) P[C( \³< A  ;! € h) excisable goods that have been lost or

[AN! ; ^ !E
$Ä ;! destroyed by accident or other

Å
9:; <=
C%D( unavoidable cause:
EGH :-

(/) EGH
K)E ;!
'(Tc (1) in the course of removal of the goods
Z%"E ˜!„ EGH— [A!
— by the manufacturer from the
h K( ; %Q _e manufacturer's factory including
when loading or unloading the goods;
(5) [h( [K(<D( › (2) in the factory of the manufacturer in
EGH— KTp A!
— which the goods were manufactured
h (=. %Q _e before removal from the factory;
(ˆ) EGH— I [KcT:D( (3) on board an aircraft or vessel prior to
› A(„…E ;! K"[ importation into Ethiopia.
K~~ ; %Q _vv

5/
9:; <=
C%D( A?Zab 2/ Excisable services shall be considered to be

[I (z
U´ JD(
P%C( exported from Ethiopia if the services are
A?Zab— I (=. P?™ supplied from a place of business in Ethiopia

EZc l
–<
U´ ^( .N! ; for use or consumption outside Ethiopia.

P(Q ZE [I g ^k (vv
?@ 6505123

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ˆ/
{ AE`@ EU= AE`@ (5) L’P 3/ Sub-Article (2) of this Article shall apply

P^(
< %ClE A?Zab— only if the Authority is satisfied that the
I (=. .N! ; +Q K^kE services have not been consumed in Ethiopia.
!E (vv
Š/
L` C A!
A  ;! € 4/ Sub-Article (1) (d) shall not apply if the
[AN! ; ^ !E C$Ä ;! licensed manufacturer has been compensated
CÅ EGH ¢ ?o EE ^ EJ for the loss of the excisable goods and the
¢(
9:; <E
P˜!" [^ compensation includes the excise tax payable
on the goods.

{ AE`@ EU= AE`@ (/) (K) $GP
^E A; !vv

‘.
9:; <= =€ K]T 9. Excisable Value

//
{ AE`@ cE± L’P
P^( 1/ This Article shall apply where the First
[A+« " Ž( ]E$T / Schedule specifies a rate of excise tax
payable by reference to the excisable value of

C(
9:; <= '=[L K]T
excisable goods or services.

EGH— ;!
A?Zab—
9:;
<= '=[L + P^E _ (vv
5/  I
P?V EGH
9:; 2/ The excisable value of excisable goods
<= '=[L +
P[Q c!" imported into Ethiopia shall be the sum total
;^J:- of the following amounts:

œ) EG( ;
d!Π`T.
P[L a) the customs value of the goods as

determined under the Customs
m^E! %;^E! d!ΠA+, K]T
Proclamation, whether or not any Customs

P](
EG( +e
Duty is payable on the goods;

C) d!ΠA+, K]T [L
P?%( b) the amount of Customs Duty (if any)

d!Π`T.vv payable on the goods under the Customs
Proclamation.
ˆ/ I (=.
PKTp
9:; <= 3/ The excisable value of excisable goods

C%D( EGH
9:; <= manufactured in Ethiopia shall be the ex-
'=[L +
h Ki) + ^ER factory selling price of the goods, but not

P[QE A;˜!"!:- including the following:

œ) EG AN"– ;
C(E
˜' a) the value added tax payable on the
E§ <=e supply of the goods;
b) the cost of excise stamps, if any; and
C)
9:; š!" (C) ge EJ
ž)
KM EG K†H E gR c) the cost of returnable containers.
Š/ { AE`@ EU= AE`@ (r)
 ??( 4/ without Prejudice to the provision of Sub-
EE $` ^n
9:; <= Article (5) of this Article, the excisable value

P[L%D( A?Zab +
P[C( of excisable services shall be:
;^J:-
œ)
KŽ?( U(
9:; <= a) if the excisable services are supplied by a

P[L%D(E A?Zab
i$( registered person in an arm's length
ZE‡ €D( UH K[  T? transaction, the fee, commission or charge
Z; [^ [h;
^(
A?Zap payable for the services;
+R ‹PME ;! € je
?@ 650512

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C) € 'JD(! \³<
A?Zap b) in any other case, the fair market value of
Cx
? +vv the services.

r/
9:; <=
P[L%D( A?Zab 5/ The excisable value of excisable services

+ A?Zap ;
P[LC(E
˜' shall not include the value added tax, if any,
E§ <= A;˜!"!R payable on the supply of the services.
10. Adjustment for Inflation
6. '=[ =C'cTZ
// P©=Œ P( KK [{ A+, 1/ The Minister by a directive to be issued it
" Ž( ]E$T / KC[( may increase or decrease not exceeding

'=[L !³ ; [6 Kb C$ 10% in the rate changed it first schedule in
relation to this proclamation.
!³ ˜!" ;! `E= ; vv
5/
<= %Clk [{ A+, " 2/ The Authority shall, in accordance with the
Ž( ]E$T / -". C( directive issued by the Minister, adjust the

9:; <= '=[L K³ ; specific rate of excise tax specified in first
P©=Œ P( KK K]T schedule of this Proclamation at least once a
mE= 7K AEc _
+ ET year to take inflation into account.
'=[ 'cTZ ACvv

6/.
6/.
9:; <=
C%D( EGH
h 11. Ex-factory Selling Price of Excisable Goods
Ki) +

//
9:; <=
C%D( EGH 1/ The ex-factory selling price of excisable

h Ki) + (
P%C(:- goods shall be:
a) if the excisable goods are sold by the
œ) A!
—
9:; <=
C%D(E
manufacturer, other than to a purchaser
EGH
i$( ZE‡ €D( UH
in an arm's length transaction, the price
K[ P TZ Z; C?(
^
payable by the purchaser;
EE ^R ?(
[LC( +e

C) € 'JD(! \³< EG( [A!

— b) in any other case, the open market value
h  _ C( Cx of the goods at the time of removal from

? +vv the manufacturer's factory.

5/ h Ki) + ;
[LC( 2/ The Excise tax paid on the ex-factory

9:; <= Z;p TU™ ; selling price shall be separately shown in
C;b K<
 ACvv the invoice.

65.
65.
9:; <=
C%D( EGH K$E 12. Quantity of Excisable Goods

// ;{ AE`@ L’P
P^( [A+« " 1/ This Article shall apply where the First
Ž( ]E$T / K]T EGH— Schedule specifies a rate of excise tax
;
9:; <=
C(
EGH—E payable by reference to a quantity measured
Æ ;!   K]T % T? K$E by volume or weight.
P^E _ (vv
5/ P[Q \³<H
9:; <= 2/ If:

P[L%D( EGH
9:; <=
'=[L K$E
PU( [EG( "

Pi$(E
EG(E 'i_ EJ (=´

Ž(E   K]T 'cTZ
;^J:-
?@ 650512B

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12288

œ)
9:; <=
P[L%D( EGH a) excisable goods are imported into

 I P?V ;! Ethiopia, or removed from the factory of
L` C A!
[KTp a licensed manufacturer, in a package
h P´ _ [EG( " intended for sale with, or of a kind
A„ [Pi. 'i_ " ;!
{ usually sold with the goods in a sale by
retail; and
7; EGH  "f„ Pi´
AÆx(E _ AT( [Pi´
'i_H " ^Ee EJ
b) the package:
C) 'i_(:-
(/)

 p ’L [^e (1) is not marked or labeled with a net
;! weight; or
(5) Pi. _ (=´ C( ;Ž (2) is not commonly sold as containing,
C!Ç
P<N %CK^k ;! or is not commonly reputed to
AÆx(E _ ;Žp
P<N contain, a specific quantity or
%CK^k Cx ÆpE ;! weight.
 pE 'N
';f [^vv

ž)
EG( %C#
'i_(E


c) the owner of the goods is unable to
  Cx
<= %ClkE satisfy the Authority of the correct net
PT AÀ·E '=T‰ fCR weight of the package, the excisable
goods shall be liable to excise tax

9:; <= C%D( EGH
according to the gross weight of the
;
9:; <=
P[LC(
package and its contents.
'i_( EJ (=´ Ž( EG
$N   ; ;^Jvv
3/ without prejudice to the provision of sub-
ˆ/ { AE`@ EU= AE`@ (Š)
 ??( article (4) of this Article, if:
EE $` ^nR P[Q \³<H
'i_( ; [?C®( K$E U EG
(=´ EE‰C( ;¿$
:-

œ)
9:; <=
P[L%D( EGH a) excisable goods are imported into

 I P?V ;! Ethiopia, or removed from the factory of
a licensed manufacturer, in a package
L` C A!
[KTp
intended for sale with, or of a kind
h P´ _ [EG( "
usually sold with, the goods in a sale by
A„ [Pi. 'i_ " ;!
{
retail; and
7; EGH  "f„ Pi´
AÆx(E _ AT( [Pi´
'i_H " ^Ee EJ
b) the package:
C) 'i_(:-
(/)
P;Ž(
U Æ C( EG (1) is marked, or labeled as containing a
'i_( ;
’L [^e ;! specific quantity of the goods; or
[[

(5) Pi. _ (=´ C( ;Ž (2) is commonly sold as containing, or

C!Ç
P<N [^vv is commonly reputed to contain, a
specific quantity of the goods,
the package shall be treated as containing
not less than the specific quantity.
?@ 650512‘

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Š/ { AE`@ EU= AE`@ (ˆ)
KC[( 4/ If the package referred to in Sub-Article (3)
'i_
Ž( K$E [U( K$E ; of this Article contains more than the

^ EE ^
9:; <=
P[LC( specific quantity, excise tax shall be
Cx( K$E ; ;^Jvv computed on the actual quantity.

r/
< %ClE '!T   5/ The Authority may by directive determine

CP.! -".
z EJ (‰& and specify the allowance for tare or

PL` (E K$E EJ
PL`cE wastage that may be granted and the
\³< KK ;=Jvv conditions under which it is granted.

6ˆ.
6ˆ.
9:; <=
C%D( A?Zab 13. Place of Supply of Excisable Services

U´ –<

9:; <=
C%D( A?Zab A supply of excisable services shall be deemed

U´ A?Za Ug( I (=. to be made in Ethiopia if the services are
%C(
EZc l
–< [^ A?Zap supplied from a place of business of the
I (=. EE U$ ;¿$
vv supplier in Ethiopia.
6Š.
6Š. .È EG/
EG/Z7 ;
[LCE <= 14. Relief for Raw Materials
=C'`J=

//
L` C A!

9:; <= 1/ Where excise tax has been paid in respect of
P[L%D(  A?" (=. ?V ;! excisable goods imported into, or
A?" (=. KTp .È manufactured in Ethiopia by a licensed
EGH /Z7b ;
9:; <= manufacturer and which have been used as

[LC EE ^ EJ E{E .È raw materials in the manufacture of other
EGH /Z7b
K˜TŸ(E !" ([{ excisable goods (hereinafter referred to as
"finished goods"), the excise tax paid on the
· “
K˜TŸ !"”) C'!T
raw materials shall be offset against the
Z7
$`K%D( [^R .È
excise tax payable on the finished goods.
EGH—/Z7b— ;
[LC( <=
K˜TŸ !"b— ; [P[LC(

9:; <= " EE `J= ; Tvv

5/ { AE`@ EU= AE`@ (/)
 ??( 2/ The provisions of Sub-Article (1) of this
A‹ER E%^E EJ =À"E A;˜!"!vv Article shall not apply to alcohol, tobacco
and sugar.
!E
j É=
CHAPTER THREE
=CLGc
j AEc LICENSING
Part One
LGc C'Zo =CP`" 'K[f Application for a License
6r.
6r. LGc 'Zo
P=LD( l
H 15. Activities Requiring a License
// 'Ex(! U( [<= %Clk LGc 1/ A person shall not undertake any of the
?o ;! <= %Clk ŽEc following activities unless the person is
KŽ? =`" P[Q l
H licensed or registered by the Authority to
; K]'
 A; !:- undertake the activity:

œ) I (=.
9:; <= a) the manufacture of excisable goods in

P[L%D(E EGH '!Te Ethiopia;
?@ 65051¨

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C) { A+, AE`@ y‘  ??( b) the importation into Ethiopia of

K]TR P©=Œ P( KK excisable goods specified by the

9:; š!" C$j%D( ;?% Minister under Article 29 as requiring an

%Q
9:; <=
C%D(E excise stamp;
EGH 'NTe
ž)
9:; <=
P[L%D(E c) the supply of excisable services; or
A?Zab 'NTe

K) P©=Œ P( KK LGc d) the carrying out of any other activity in

'Zo Z¹< P.%D( €a Ethiopia for which the Minister by a
l
Ž"µ K]'
vv Directive, may impose a requirement or
a license.
5/ { AE`@ EU= AE`@ (/)
 ??(E 2/ A person who manufactures excisable goods
KCj
9:; <=
P[L%D(E or supplies excisable services in
EGH '!T ;! A?Zab E contravention of Sub-Article (1) of this
K=$ l
;
]'
U( [{ Article shall be liable for the excise tax
A+, " Ž( ]E$T / payable in respect of the excisable goods or

C(E
9:; <= EE [j services at the rate specified in the First
Schedule.
;? ‰vv
ˆ/ { AE`@ EU= AE`@ (5)
9:; 3/ A person who is liable to pay the excise tax
<= EE [j
P? c U(:- under Sub-Article (2) of this Article:

œ) <= %Clk $
` _ <E a) shall pay the tax immediately upon
 (k KL ACe demand made by the Authority;

C) [9:; < ˜' { A+, b) shall be in addition to any penalty and
EE \! <= A=‰ " A+, interest imposed on the person under this
Proclamation or the Tax Administration
 ??( K]T E  $&
Proclamation.
;^J EE \! NJ Cc
EE [j ; Tvv

63.
63. CLGc 'K[f =C'NT 16. Applications for a License
// { A+, AE`@ 6r (/) ŽTŽŒ 1/ A person who intends to undertake any of

l
K=‹ CK]'

PLZ U( the activities specified in Article 15(1) shall
AE`@ 6r (/) [ŽTŽŒ K[ apply to the Authority for a license for any
CP]'

l
K= LGc of the activities specified under Article 15
EE U$( C<= %Clk 'K[f (1).
'NT ACvv

5/ { AE`@ EU= AE`@ (/) K]T 2/ An application under Sub-Article (1) of

P`" 'K[f:- this Article shall be:

œ) L` ( N@ K]T `"e a) in the prescribed form;

C)
LGc j [Le b) accompanied by the prescribed fees;

ž) %Clk U( AÀ·E `"e c) lodged with the Authority in the

;?%vv prescribed manner.
?@ 65051¨/

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j \C Part Two

LGc =CK=$ Issue of Licenses
6.
6. LGc K=$ 17. Issue of License

// { AE`@ EU= AE`@ (5)
 ??( 1/ Without Prejudice to the provision of Sub-
EE $` ^nR
<= %Clk { Article (2) of this Article, the Authority
A+, AE`@ 63 K]T
P`"CE shall consider an application under Article
16 and may grant or refuse to issue the
'K[f KK"K" CAK— LGYE
applicant with a license.
U. ;! [C[ ; vv

5/
<= %Clk LGc [C
P C( 2/ The Authority may refuse an application

P[Q \³<H Kn
D(E TZ. under if satisfied that:
;^J:-
œ) AK— { A+, ;! <= a) the applicant has been convicted of tax
evasion or fraud under this Proclamation
A=‰ " A+, K]T <= KU"
or the Tax Administration Proclamation;
;! <= 'z"" E  [Ê

LT  [^e

C) AK— 'JD(! Z E! b) the applicant has been convicted of an

'd  ;! 'z"" E  offence involving dishonesty or fraud
[Ê
LT  [^e under any law;

ž) AK—:- c) the applicant:

(/)
[UT ;! E‰(E CKL (1) is or has been declared bankrupt or
fC [^R insolvent;
(5) ˢ
!E œp K
 (2) is in the process of liquidation or
; C ;! %CA

U
K receivership;
[^R
K) 'K[f(
`T(
9:; <= d) in the case of an application to be a

P[L%D(E !"b C'!T [^ manufacturer of excisable goods, the
'K[f(
KC[( hR factory, plant or equipment, specified in
'!TfR K¢ !"pE C'!T the application is not adequate to
;!
9:; <=
P[L%D(E manufacture or secure excisable goods;
EGH CK[< & ^R

]) AK— 'JD(!
<= Z e) the applicant has not kept proper records
 ??( K]T Cx(E as required under any tax law or has

: K? ŽR ;! otherwise failed to comply with its
'JD(!
<= Z
CE obligations under a tax law; or if he does
Z¹<  ;! <= not agree to comply with his obligation
to keep proper records within a given
%Clk $
`( K]T
time frame as required by the Authority;
U _ (=.
: K?

K Z¹<(E CK Z¹<
CKZ% =''e

T) { AE`@ EU= AE`@ (5) (œ) (C) (ž) f) paragraphs (a), (b), (c) and (e) of Sub-
EJ (])
KC[( [AK— " Article (2) of this Article apply to a
ZE‡ C(E U(
PKC[ ^ER person related to the applicant and the
;{ AE`@ L’P
P^(
<= Authority is satisfied that the related
?@ 65051¨5

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%Clk [AK— " ZE‡ C( person is reasonably expected to be

U( LGc $
`
l
K= (=. involved in the conduct of the activity to

P]'
CK^k & ."È C( which the application relates.
P^E _ (vv
ˆ/ { A+, K]T [PU$( LGc " 3/ The Authority may impose such terms,
Ž
< %ClE A=L_ K=a conditions or restrictions as it considers
[<
(
( Ga J \³<H ;! appropriate in relation to a license issued
under this Article.
? РEE nΠ "Z ; vv

Š/ { A+, AE`@ 63 K]T
LGc 4/ The Authority shall give an applicant for a
'K[f CP`" U(
<= license under Article 16 written notice of
%Clk 'K[f( K]T the decision on the application within 30
days from the date the application is

U$(E (:³ 'K[f( [`T `E
submitted and if the application is refused,
 !„ P¿$"
ª `E _ (=. @\j
the notice shall include reasons for the
KZC@ ACvv 'K[f( (cN
refusal.

 T? [^ (cN
 T? !E
K?C@ ACvv
r/ { A+, K]T
PU$( LGc 5/ A license shall take effect from the date
<= %Clk U$( LGc ; specified therein by the Authority and shall
unless earlier suspended, remain in force
[KC[( `E  !„
P®J ^ER {
until cancelled under Article 21.
A+, AE`@ y/ K]T ]TŽ
=`" U _
®J ;^Jvv

6B.
6B.
LGY N"@ 18. Form of License

// { A+, AE`@ 6 K]T
PU$( 1/ The license issued under Article 17 shall be
LGc ® `( N@ K]T
PU. in the prescribed form.
;^Jvv
2/ A license issued to a manufacturer of
5/
9:; <=
P[L%D(E EGH
excisable goods shall specify the following:
CPK" U(
PU. LGc
P[QE
K AC:-
a) the class or classes of excisable goods
œ) A!
— EE K"
L` CE
that the manufacturer is licensed to

9:; <=
P[LE EG !c manufacture;
;! !c– R

C) A!
—
9:; <=
P[L%D(E b) the factory/factories at which the
manufacturer is permitted to manufacture
!"b EE K"
L` CE
excisable goods.
h/hH vv
3/ A factory specified in a license issued under
ˆ/ { AE`@ K]T U$ LGc
this Article shall be used only for the

KC[( h '!T
P C(
manufacture of the class/classes of excisable
LGY
KC[(E
9:; <= goods specified in the license.

P[LE EG !c/!c– f (vv
4/ Only the person specified as the licensed
Š/ { AE`@ K]T U$ LGc
manufacturer in a license issued under this
KC[( h
9:; <=
Article shall manufacture excisable goods in

C%D(E EGH '!T
P C( the factory specified in the license.
LGY ; A!
P
KC[(
U( f (vv
?@ 65051¨ˆ

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r/
9:; <=
C%D(E A?Zab 5/ A license issued to a supplier of excisable

'NT l
; C]'
U(
PU$( services shall specify the excisable services
LGc
PU$(E A?Za
P?Ì K^E offered.
ACvv

6‘.
6‘. LGc
U$( U( Z¹<H 19. Obligations of Licensed Person

// LGc
U$( U(
P[QE
KL®! 1/ A licensed person has the obligation to carry
Z¹< AC:- out the following:

œ)
U$(E LGc +J NÍ
EZc a) display in a conspicuous place the

l
(E P¯c +J Kl original of the license at the principal
place of business;
Z@ P<; –< KC$je

C)
9:; <=
P[L%D(E b) in case of excisable services, a certified

A?Zab PKC[
LGYE copy of the license at every other place

T?$ ‹Î
EZc l
(E of business.
Pc –< \Q
KC$jvv

5/ LGc
U$( U(
P[QE KTÏH 2/ A licensed person shall notify the Authority,
PKC[ C<= %Clk @\j in writing:
'=<&
K Z¹< AC:-
a) if the licensed person ceases to carry on the
œ) LGc
U$E l
¿K EE ^e
activity for which the license is issued;
C)
L` C A!

P[J((E +J b) if there is any change in the name,
Z%" K$R Ac
ŸR l
(E address, place of business ownership,

P[J(EE –<R %C#R constitution, or nature of the principal

K‰  E ;!
l
(E %{ activity or activities carried on by the

C$ EE ^e licensed person;

ž)
L` C A!

l
(E c) of any period in which the licensed
EEN=G§ CU _ _ person closes operations on a temporary
¼T$ EE ^e ;! basis; or

K)
L` CE A!
PKC[ d) if, the case of a licensed manufacturer,

9:; <=
P[L%D(E EGH there is any change in the factory
specified in the license, or the plant and
C'!T P$`! LGY
equipment used to manufacture excisable
KC[( h ;! '!Tf EJ
goods.
K¢ ; C(.
 T? EE ^vv
ˆ/ { AE`@ EU= AE`@ (5) K]T 3/ A notification under Sub-Article (2) shall be
lodged with the Authority:

P[( '=<& C< %ClE
P[C( _ (=. EE "= K TZ
AC:-

œ) { AE`@ EU= AE`@ (5) (ž) K]T a) in the case of a notification under Sub-

P`"(E '=<& PKC[
EZc Article (2) (c) of this Article where the
l
(
Ž( %<` \³< [^R closure was unplanned, within 7 days

EZc l
(E CK !E
^( after the event causing the closure;
\³< $K `E  !„  `J
(=.e
?@ 65051¨Š

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C) € 'JD(! \³< '=<&(E b) in any other case, at least 7 days prior to

CK !E
^( \³< %$K the event requiring notification occurs to
 `J (=. C<= %Clk the Authority of Tax.
EE "= K TZ ACvv
Part Three
j É=
Suspension and Cancellation of Licenses
LGcE =C'?cJ =CK]T
y. LGcE =C'?c 20. Suspension of License
//
< %ClE [P[Q !Eb 1/ The Authority may suspend a license issued
AEY { A+, K]T
U$(E LGc under this Proclamation if the Authority is
'?c ; :- satisfied that:

œ) LGc [U$( U(
EZc l

" a) any of the matters specified in Article 19
Ž { A+, AE`@ 6‘ (5) (œ)R (2) (a), (b) or (c) apply to the licensed
(C)R ;! (ž)
ŽTŽŒ \³<H person;
$¥ EE ^e

C) LGc
U$( U( { A+, ;! b) the licensed person has not kept proper
<= A=‰ " A+, KC[( records as required under this
K]T ?m(E
: K? Ž Proclamation or the Tax Administration
;! 'JD(E! { A+, Proclamation, or has otherwise failed to
comply with obligations under this

CE Z¹<  EE ^e
Proclamation;
ž) LGc
U$( U( LGY
KC[p c) the licensed person has breached a
\³<H E
U EE ^e condition of the license;
K) LGc
U$( U( C<= %Clk d) the licensed person has made a false or

œU ;! A:: KTÏE
U$ misleading statement to the Authority;
EE ^R
])
L` CE A!
PKC[R LGY e) for a licensed manufacturer, the factory,

KC[( hR '!Tf ;! or plant or equipment, specified in the
K¢ 9:; <=
P[L%D(E license is no longer adequate to
!"b C'!T [E _ · A.m manufacture or secure excisable goods.
^( ?‡ EE ^R
5/ { AE`@ EU= AE`@ (/) K]T
<= 2/ Where a license is suspended under Sub-
%Clk LGcE ? EE ^ LGc Article (1) of this Article, the Authority
CU$( U( LGY
<? K^kE
P?@ shall serve the licensed person with written
'=<& @\j K=$ ACvv notice of the suspension.
ˆ/ LGcE C'?c
U$ (:³ L’P
P^( 3/ The suspension of a license shall take effect
{ AE`@ EU= AE`@ (5) K]T from the date of service of the notice under
'=<&( [U$ `E  !„ (vv Sub-Article (2) of this Article.

Š/ { AE`@ EU= AE`@ (5) K]T LGY 4/ A person served with a notice of suspension

<? K^kE
P?@ '=<&
TU( under Sub-Article (2) may, by notice in
U(
EZY '=<& [U$ `E  !„ writing and within 14 days of service of the
6Š `J (=. ;!
<= %Clk notice, or within such further time as the
PU$( ˜' _ (=. EZYE Authority may allow, appeal against the
KG!
;Z%™ 'K[f C%Clk suspension to the tax complaint review

<= NÈ< A
l
j @\j department of the Authority.
`" ; vv
?@ 65051¨r

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12295

r/ { AE`@ EU= AE`@ (Š) K]T 5/ Where a licensed person lodges a notice of
LGc
U$( U( EZYE KG! appeal in accordance with Sub-Article (4) of

;Z%™ 'K[f `T EE ^R
< this Article, the Authority shall, within 14
%ClE
;Z%™ 'K[f(  TU( days after receipt of the notice, either:
6Š `J (=.:-

œ)
;Z%‡E A#p< K`
LGYE a) accept the appeal and revoke the
E?‰ :e suspension of the license;

C) LGY
<?  U( EZY EE :C b) provide the licensed person with written
notice of the action required to be taken
C'cTZ CEZY !E
^k
before the date specified in the notice to
dcCb E 'Â T?c '=<&(
remedy the deficiencies that led to the
U _ (=. [J(JD(
P?%
suspension of the license and revoke the
Z%
E
P?@ '=<& suspension if the action is taken within
EE "U( 'cTZR '=<&( the specified time; or
U _ (=. Z%
pE [J
EZYE
'E:e
c) reject the appeal and cancel the license
ž) ;Z%‡E (cN 'cTZJ { A+,
in accordance with Article 21 of this
AE`@ y/ KUT LGYE KUT
proclamation.
; vv"
vv"
3/
< %ClE { AE`@ EU= 6/ If the Authority fails to take action under
AE`@ (r) KC[( _ (=. EU= Sub-Article (5) of this Article within the
AE`Ñ
KC[pE E"!ÏH U time specified in that Sub-Article, the

LGY E?‰ EE : ;¿$
vv suspension shall stand revoked.

y/.
y/. LGcE =CK]T 21. Cancellation of License

//
< %ClE P[Q \³<H 1/ The Authority shall, by notice in writing,

@\j '=<& K=$ LGYE cancel the license of a person when:
]" ; :-
œ)
<= %Clk { A+, AE`@ 6‘ a) the Authority has received notification
(5) (œ) K]T '=<&
TU( [^e under Article 19 (2) (a);

C) { A+, AE`@ y(Š) U( _ b) the person fails to appeal the suspension
(=. LGc
U$( U(
LGYE E?‰ of the license within the time specified in
KG! ;Z%™ `T [^e Article 20 (4);

ž) { A+, AE`@ y (r) (C) U$( c) the person fails to comply with a notice
'=<& ;! < %ClE served on the person under Article 20 (5)
U$ ˜' _ (=. LGc (b) within the time specified in the notice

U$( U( '=<&(
KC[(E or within such further time as the
:Â
`T EE ^e Authority may allow;

K) { A+, AE`@ y (r) (ž) d) the Authority rejects an appeal against
 ??( K]T LGY K<?Y the suspension of a license under Article
!E
`T(E ;Z%™
<= 20 (5) (c).
%Clk (cN  T?( [^vv
5/
LGc K]T L’P
P^( LGY 2/ The cancellation of a license takes effect
K]T¤E P?¾( '=<& [KC[( from the date specified in the notice of
`E  !„ (vv cancellation.
?@ 65051¨3

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12296

ˆ/ LGc CU$( U(
U$( LGc 3/ Any obligation or liability of a licensed

K]T
9:; <= KLE EJ person under this Proclamation or the Tax

9:; <= '=<& 'NTE Administration Proclamation in respect of
˜!„ LGY ®Eb T _ %[J( anything done or omitted to be done by the
;! %[J( 'JD(! Z%" person while licensed, including the
obligation to pay excise tax or to file excise
!E { A+, ;! <=
tax returns, shall not be affected by
A=‰ " A+, K]T
Pn"E
cancellation of the person's license.
$& A=`"!vv
y5.
y5.
LGc K<?c ;! K]T
PnT( 22. Consequences of Suspension or Cancellation
(W of License

//
L` C A!

U$( LGc
<? 1/ If the license of a licensed manufacturer is
;!
]TŽ EE ^R suspended or cancelled:
a) the manufacturer shall:
œ) A!
—:-
(1) immediately cease to manufacture
(/)
9:; <=
C%D(E EGH
excisable goods;

'!TpE Z%"  (k '¿!R

(5)
9:; <= C%D( E« (2) immediately pay all excise tax on
P?‡ EGH ; [LC(E excisable goods on hand in respect of

9:; <=  (k KLR which tax is still unpaid;
(ˆ) [< %ClE PU$( KK (3) dispose of excisable goods and
K]T A!
— h (=.
P?‡ materials in the manufacturer's

9:; <=
P[L%D(E EGH factory in accordance with the
'=?cR direction of the Authority;
ACvv
b) the Authority may:
C)
< %ClE:-
(/)
L` C A!
h( (=. (1) require the licensed manufacturer to

P?‡
9:; <=
P[L%D(E remove excisable goods in the
EGH < %ClE  ® ` –< manufacturer's factory to another
EE Ž+("
'ŽR EJ place approved by the Authority; and
(5) { A+,
 ?d Z¹<H (2) take control of the manufacturer's
KL®'D(E C'T?. EJ factory and seize any excisable goods

KEZlE ?m CKUU A=L_ at the factory as may be necessary in
E=[^ cT=
< %ClE <= accordance with Article 41 of the Tax
A=‰ " A+, AE`@ Ò/ K]T Administration Proclamation for the

A!
—E h EJ h( (=. protection of revenue and ensure

P?‡
9:; <=
P[L%D(E compliance with this Proclamation.
EGH KR ; vv

5/
9:; <=
P[L%D(E A?Zab 2/ If the license of a person licensed to supply

C'NT LGc
U$( U( LGY
<? excisable services is suspended or cancelled,
;!
]TŽ EE ^ %CLGY:- the person shall:
œ)
9:; <=
P[LE A?Za a) cease to supply the excisable services;
'NTVE '¿!e EJ and

C)
9:; <= P[L%D( A?Zab b) pay excise tax on excisable services

; [LC(E <= KLe supplied in respect of which tax is still
unpaid.
?@ 65051¨

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12297

ˆ/
{ AE`@ EU= AE`@ (5) L’P 3/ If the license of an importer, other than a
[P^E%D( (z C A=Kg LGY person to whom Sub-Article (2) of this

<? ;!
UTŽ EE ^ LGc Article applies, is suspended or cancelled,

U$E
l
EEN=G§  (k the person shall immediately cease to
'¿! ACvv undertake the activity for which the license
is issued.
Š/
<= %Clk LGY K<?c ;! 4/ The Authority may, by notice in writing,
K]T !E (E g EE  require a licensed person to pay such costs as
LGc CU$( U(
@\j '=<& may be incurred by the Authority as a result of
the suspension or cancellation of the person's
U$( ; vv
{ 7;p g C<=
license as specified in the notice and the costs
A=‰ " A+, AL½¾! EE <=
shall be treated as tax for the purposes of the
;¿$
vv Tax Administration Proclamation.
yˆ.
yˆ. LGc [K<?Y ;! [K]T¤ ›
<= 23. Authority to Notify Licensee Prior to Suspension,
%Clk U. =CP?%( '=$E`& Revocation or Cancellation of a License
//
<= %Clk { A+, K]T 1/ Where the Authority seeks to suspend,

U$(E LGc C'?c ;! CK]T revoke or cancel a license under this
` EE ^R %CLGY Uc
<` (E Proclamation, it shall give 21 days' notice to
E"!Ï EE (`( [y/ `J ›
@\j the licensee prior to taking the intended
'=$E`& K=$ ACvv ;{! action, giving the grounds upon which such
'=$E`& E"!Ï( EE Uc KE=9 intended action shall be taken, and requiring

^kE \³<H EJ LGc
U$( U( the licensee to remedy any circumstances
'=[  "Z%D(
P?% d‰ E which may require to be remedied.
z!"
P?@ K^E ACvv

5/ LGc
U$( U( { AE`@ EU= 2/ The licensee shall, within 21 days of receipt
AE`@ (/) K]T '=$E`&(  TU( of the notice, take actions as required by the
y/ `J (=. < %ClE Authority.

$
-
'=[ E"!ÏH E K(Uc
ACvv
ˆ/
<= %Clk LGc
U$( U( 3/ The Authority shall, within 14 days,

U‰D(E
'=[ E"!ÏH acknowledge in writing the actions taken by

PKC[ “"  TU( 6Š `J (=. the licensee or proceed to confirm the effect

UY E"!ÏH & K^JD(E ;! of the intended notified action.
'=$E`&(
?CÓ E"!ÏH
PUY
K^kE CKZC@ ; vv
Š/ '=$E`&(
?CÓ E"!ÏH 4/ A Licensed Person who receives

PUY K^kE EE (`(
 T? notification of confirmation of the intended
LGc
U$( U( <= %Clk action is dissatisfied with the decision of the
Authority may file a notice of objection
(¢³ N"
Uo EE ^R (¢³(
with the tax compliant Review Department
[?C®C `E  !„ 6 `J (=.
of the Authority within 10 days from receipt
NÈ<(E C<= %Clk
A#p< A
of such decision.

l
j `" ; vv

r/
A#p< A
l
j A#p<( 5/ The Review Department shall make a
 TU( 6 `J (=. `T( NÈ< decision on the notice of objection within 10
; (¢³ K=$ ACvv days from receipt of such notice.
?@ 65051¨B

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12298

3/ LGc
U$( U( A#p< A
l

6/ A Licensed Person dissatisfied with the
j U$( (¢³ N"
Uo EE ^ decision of the Review Department may file
(¢³( ?C®C 6Š `J (=. CZ" a notice of appeal with the Tax Appeal
;Z%™ ‹PME ;Z%™ `"
P  Commission with 14 days after being served
^ER
;Z%‡ 'K[f  `J (=. with a notice of decision and shall serve the
C< %ClE EE "= 'cTZ Authority with the appeal application within
ACvv 7 days of filing.
yŠ. =C;Z%™ 24. Appeal
//
Z" ;Z%™ ‹PME { A+, AE`@ 1/ The Tax Appeal Commission shall hear and
yˆ (3) K]T
`TCE ;Z%™ <= determine the appeal made in accordance
A=‰ " A+,  ??( _ (=. with Article 23 (6) of this Proclamation
K"!„ (:³ K=$ ACvv within the time prescribed by the Tax
Administration Proclamation.
5/ Z" ;Z%™ ‹PME
U$( (:³
Z 2/ Any party aggrieved by the decision of the
={ AC a
P!E LGc Tax Appeal Commission may appeal to the

U$( U( ;!
<= %ClE Federal High Court on question of law
(:³( U$ ª `J (=. ;Z%‡E within 30 days from the date of the decision.
C
 [jx( j"c # `"
; vv
!E
j A
 CHAPTER FOUR

9:; <= -.." EXCISE TAX CONTROL
yr.
yr.
9:; <= P[L%D( EGH ; 25. Excisable Goods under Excise Control

P TZ -.."
// LGc U$( A!
h (=. 1/ Excisable goods stored in the factory of a

P?‡
9:; <=
P[L%D( licensed manufacturer shall be subject to the
EGH <= %Clk
9:; <= control of the Authority (herein after
referred to as "excise control").
-.." ([{ · “
9:; <= -.."”
P
P$
) ; TZ%D+vv
5/ { A+, K]T
9:; <= 2/ Excisable goods shall be subject to excise
P[L%D( EGH ;
9:; <= control until the earlier of:
-.."
P T?( [P[Q ` K(
_ ;^J:-
œ) LGc U$( A!
h (=. a) the removal of the goods from the

P?‡ EGH I (=. .N! factory of a licensed manufacturer for
; EE (Q [h( E=[P´e consumption in Ethiopia;
‹

C) EGH— [I (z E=[PÔe ;! b) until the goods are export from
Ethiopia; or

ž) { AE`@ EU= AE`@ (Š) ;! c) the destruction or disposal of goods in
{ A+, AE`@ B (/) (i) K]T accordance with Sub-Article (4) of this
EGH— [A?Za (z E=[P Td Article or Article 8 (1) (h) of this
Proclamation.
;! E=[P?Y cT=vv

ˆ/ EGH 9:; <= -.." =" E=Q 3/ When goods are subject to excise control:
cT=:-
?@ 65051¨‘

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12299

œ) <= %Clk lE
U$( a) an officer authorized by the Authority

%Clk ]
x 'JD(! _ may, at any time, examine the goods.
EGH—E KK"K" ; vv
b) no person shall, except with authority of
C) { A+, K]T < %ClE
the Authority granted in accordance
[L` C U( =`" 'JD(! U(
with this Proclamation, remove the
EGH—E [h '( ;!
goods from a factory or otherwise
'JD(! € KE?c EGH—E interfere in any way with the goods.

PKC[ 'JD(E! Z%" KL®!
A; !vv

Š/ EGH 9:; <= -.." =" %Q 4/ When goods are subject to excise control,
_
< %ClE
EG( %C# the Authority may permit the owner of
EGH—E C< %ClE EE =T those goods to abandon them to the
$;N ; vv
< %ClE EGH—E Authority, and on such abandonment the
[T[ · EGH— < %ClE goods may, at the expense of the owner
PU. KK K]T %C#p g i´ thereof, be destroyed or otherwise disposed
;! [A?Za (z EE ^k  TZ of as the Authority may direct.
;! ?Y ; vv

y3.
y3. 9:; <= -.." l" Q
9:; 26. Obligations of Licensed Manufacturer in
<=
P[L%D(E EGH PKC[ Relation to Excisable Goods under Excise
LGc
U$( A!
Z¹<H Control

//
9:; <= -.."
P TZ%D( 1/ For the purposes of ensuring proper

9:; <=
P[L%D( EGH accounting of excisable goods under excise
?m(
: A
KŽ?V K^kE control, a licensed manufacturer shall:
C'T?.R
L` C A!
:-

œ)
< %ClE h( (=. a) keep and maintain at the factory, metering

P?‡
9:; <=
P[L%D(E and measuring devices, and such other
EGH ;! .È EGH E CKK?R equipment as may be necessary in order
 <D(E CKCR CK¿$"R to enable the Authority to take an account
of, or check by weight, gauge or measure,
CK-$" EE  ;! EE A=L_p
all excisable goods or materials in the
€a K::;
-.." l
H E
factory;
EE [J(E h( (=.
KCË
;!
K-$ K¢H EE nŒ
EJ P?% EE $-
'cTZe
C) h( (=.
P?‡
9:; <= b) store excisable goods in the factory in

P[L%D(E EGH
 -.." such manner as to facilitate the taking of a
C'cTZ P=  KE?c
'=`K.e full account of the goods;

ž) ® `( N@ K]T
.È EGH E c) keep a materials account in the approved

!?% '¯cR C;! '!T   form and enter therein the particulars of
.N! ; EE (Q h(
T[%D(E all raw materials and intermediate goods
.È EGH EJ ZAb E{ N­ received at the factory for use in
; KK? EJ 
Œ K˜TŸ manufacturing, and balance the account at

!?%(E PÆE Cx
'T?.e the end of each month;
?@ 650ˆ1

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12300

K) ® `( N@ K]T
K˜TŸ d) keep a finished goods account in the

!"b E !?% '[JER EJ \ approved form and enter therein
N@ ; h(
KTp
9:; particulars of all excisable goods
<=
P[L%D(E EGH EJ manufactured therein and delivered
[h(
´ EGH E KK? therefrom and shall balance the account at
the end of each month;
EJ 
Œ K˜TŸ
!?%(E PÆE
Cx
'T?.e
])
9:; <= P[L%D( h(
e) ensure that excise tax is paid on any
(=. .N! ; +Q EGH ;
excisable goods consumed at the factory;

9:; <=
[LC K^kE
and

'T?.e

T) P©=Œ P( KK EE ÂQ f) comply with such other requirements as

P$
- \³<H E
'Âe may be specified in the directive issued
Z¹< ACvv by the Minister.

5/ C{ AE`@ EU= AE`@ (/) (œ) AL’®! 2/ For the purpose of Sub-Article (1)(a) of this

< %ClE P( KK Article, the Authority shall, by a directive,
L_
^k
KCË ;!
K-$ specify the requirements of a measuring or
EE \! €a A=L_ K¢H E metering device and such other equipment as
L_ %{ =E ; vv may be required.

ˆ/
< %ClE:- 3/ The Authority:

œ) C{ A+, AL’®! A=L_ ^n ?o( a) may, at any time, take samples of
'JD(! _
9:; <= excisable goods free of charge for such

P[L%D(E EGH J¥J [A!
— purposes of the Proclamation as the
’
K(Uc K C( ^ER E{ Authority may deem necessary, and any
J¥JH
<= %Clk PU$( such samples shall be disposed of or
(:³ K]T ?Y ;! CA!
— returned to the Manufacturer as the
KC ; Qvv Authority may direct; or
C) @\j P=( AÀ·E
9:; b) may, subject to such written conditions as
<=
P[L%D( EGH %C# the Authority may impose, permit the

9:; <E :;[j C? owner of excisable goods to take samples
';( K$E [h( J¥JH E which are of no commercial value without
EE =c LNc ; vv payment of the excise tax thereon.

y.
y. [A‹ ' h (z
A‹ 27. Keeping or Use of Still otherwise than by
' K¢E K ;! K$`! Distiller or Rectifier Prohibited

[C[C =CK^k
// { AE`@ EU= AE`@ (5)
 ??( 1/ without prejudice to the provision of Sub-
EE $` ^n LGc [U$(
A‹ Article (2) of this Article, no person other
' h (z 'JD(! U( than a licensed distiller or rectifier shall

A‹ ' K¢E K ;! keep or use a still.
K$`! A; !vv
?@ 650ˆ1/

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12301

5/
< %ClE
P.D( A=?‰, 2/ The Authority may permit, without

\³<H EE $- ^( P[Q prejudice to such conditions as the
!Eb %Clk [L` C
A‹ Authority may impose, the keeping or use of
' h (z € U(
A‹ a still by a person other than a licensed
' K¢ EE ; ;! distiller or rectifier when the still is:
EE $`! %Clk LNc ; :-
œ)
A‹ ' K¢E CMz a) kept by a person who makes or keeps

PK" ;!
P; ^Ee stills solely for the purpose of sale;

C) K¢(
Ž( ;! .N! ; b) kept or used for experimental, analytical,

P(C( C¥[
R C.Je ;! or scientific purposes;
C:;E: !"!" 7' ^Ee
c) kept or used for the manufacture of an
ž)
A‹ ' K¢(
Ž( ;!
article other than spirits.
.N! ;
P(C( [A‹ K$O
(z
^ € !" C'!T ^Evv

yB.
yB. [h g EE  Td
P¿$Œ EGH 28. Deemed Removal of Excisable Goods
//
L` C A!

<E %ClE 1/ A licensed manufacturer who cannot
PT AÀ·E h(
KT(E account, to the satisfaction of the Authority,

9:; <=
P[L EG Æ for any quantity of excisable goods
'=TÏ 'T?. fC EE ^R AEc manufactured shall be deemed to have
" (=. K"Õ %C( EJ KT removed those goods from excise control in
the month in which the discrepancy arose.
;  a P<K( K[ C(E
EG [9:; <= -.." (z
[h( g EE‰ T? ;¿$
vv

5/
L` C A!
 %KT( EJ 2/ A licensed manufacturer shall notify the

KT EG PKŽ? Uc ; Authority of any discrepancies between the
KŽ?( K[ ¡ KnŒE ` manufacturer's actual and recorded
inventory as soon as the manufacturer
EE ^R ;{Ek  (k C<
becomes aware of the discrepancy.
%ClE '=<N ACvv

CHAPTER FIVE
!Ej A!=
EXCISE STAMPS

9:; š!"
y‘.
y‘.
9:; š!" EJ €a !b 29. Excise Stamps and other Markings
1/ The Minister may by directive specify:
// P©=Œ P( KK
P[QE
=E ; :-

œ)
9:; š!" C$j%D(
P?% a) the excisable goods to which excise

stamps shall be affixed;

9:; <U
P[L%D(E EGH e
b) the markings that shall be affixed on
C) [9:; <= ’ ^k
A‹
spirits that are exempt from Excise Tax;
!"b ;  TZ
P?%(E !e
c) the systems for management of excise
ž)
9:; š!" EJ €a !b
stamps and excisable goods;

PC$Ä%D(E
9:; <=

P[L%D(E EGH
A=‰ "
l"7e
?@ 650ˆ15

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12302

K)
9:; š!" ;! €a d) the place and time of affixing excise

!b
PC$ÄE –< EJ _vv stamps.

5/
< %ClE { AE`@ EU= 2/ The Authority shall, by notices to be issued
AE`@ (/) K]T
9:; š!" EJ two times in at least two newspapers of
€a !b EE C$j%D( <Ž¤ national circulation, specify the types and
EGH ;
PC$L(E
9:; š!" descriptions of excise stamps to be affixed
EJ €a !b 7; EJ ;Ž on goods specified under Sub-Article (1) of
PKC[ A?
 %m %D( \C this Article.
H mE= C\C _ {
'=<& vv

ˆ/
9:; <=
P[L%D( EGH 3/ If excisable goods are manufactured for

KTp C(z ? EE Ô ;! export, or for delivery to persons listed in
[{ A+, " Ž( ]E$T 5 No. (2) and (3) of the Second Schedule, the
goods shall be marked with such

-." 5 EJ ˆ CŽTŽŒ UH
^
inscriptions as the Minister may specify to
EE ^R E{ EGH ; CP T?(
facilitate the tracking and tracing of the
J -.." EE K P©=Œ
goods.
P=( AÀ·E EGH— ; ¡ !
 TZ ;?%vv

Š/ P©=Œ P( KK K]T 4/ A person shall not remove excisable goods

9:; š!" [KC$Ä › specified in Sub-Article (1) from the place
'JD(! U( { AE`@ EU= AE`@ designated for affixing stamps unless the
(/)
ŽTŽŒE
9:; <= goods have been affixed with stamps in
accordance with the directive.

P[L%D( EGH
9:; š!"
EE C$j%D( [`K´ –<
'E`:`= A; !vv

r/ { AE`@ EU= AE`@ (Š)
KC[( 5/ Notwithstanding Sub-Article (4) the
mn"!
< %ClE C¡ Authority may in exceptional
circumstances, and with prior approval of
\³<H J [P©=Œ A=`c LGc
the Minister, allow removal of excisable

?o ^E
9:; <=
P[L%D(
goods from excise control without affixing
EGH
9:; š!" :;C$j%D(
excise stamps on the goods.
[9:; <= -.." (z EE ^k
 "Z ; vv

!E
j =c= CHAPTER SIX

=CKM REFUNDS
30. Refunds
ª. KM
// A?" (=.
KTp ;! [(z A?" 1/ If excise tax has been paid by a person on

K´
9:; <=
P[L%D( excisable goods manufactured in, or
EGH
9:; <= [[LC%D( · imported into Ethiopia, the Authority shall,
on written application by the person, refund
[P[Q \³<H AEY $K K^kE
the excise tax paid if satisfied that:

< %ClE T?$ EE ^R
A!
— ;! A=Kg( P`"

ÌÃj 'K[f K]T
[LC(

9:; <= KM  TZ ; :-
?@ 650ˆ1ˆ

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12303

œ) I (=. .N! ; [K+D( a) before being consumed or used in

›:- Ethiopia:
(1) the goods have been damaged or
(/)  I K~~ ; EQ
stolen during the voyage or
EGH— [.N! (z
^k ;!
transportation to Ethiopia;

]T- EE ^e
(5) 9:; <= -.." =" Q (2) the goods have been damaged or
EGH [.N! (z
^k ;! stolen while subject to excise
control;

]T- EE ^e
(ˆ) Mz (Q K]T ?Ö( EG(E (3) the buyer has returned the goods to
CŸ×
KCU EE ^vv the seller in accordance with the
contract of sale.
C)
9:; <= [[LC · LGc b) excisable goods that have subsequently
U$( ;! KŽ? A!
been used by a licensed or registered
[9:; <= ’
^k EGH E manufacturer to manufacture unexcitable
C'!T
+Q EE ^vv goods after excise tax has been paid;
5/
L` C U(
9:; <= 2/ A licensee may apply to the Authority for a

P[L%D( EGH ;! A?Zab refund of excise tax if the excisable goods
{ AE`@ EU= AE`@ (/)
ŽTŽŒE or excisable services satisfy the conditions
\³<H
PÂQ EE \!
9:; stated in Sub-Article (1) of this Article and
<E
[LC EJ CE{ EGH ;! he has paid and accounted for excise tax on
A?Zab [?Ö( !E! 7; j such goods or services but has not received
`C K^kE '=TÏ 'T?.
fC any payment from the purchaser for the
goods or services, and the Authority may
EE ^R
9:; < KM EE
refund the excise tax if satisfied that
TZC C%Clk @Ãj 'K[f
payment for the goods or services has not
`" ; vv
< %ClE!
been received.

L` C U( E{ EGH ;!
A?Zab ; !E! 7;
9:;
<= `C K^kE TZ.

[LC(
9:; <= KM EE ^E
 "Z ; vv

ˆ/ { AE`@ EU= AE`@ (5) K]T 3/ An application for a refund under Sub-Article

P`"(
KM .Ø [{ < (2) of this Article may be made on the earlier
[ŽTŽŒ ` K( _ (=. KNT of:
AC:-

œ) EGH— ;! A?Zab— [i´ a) one year from the date of the sale of the
`E  !„ P¿$"
AEc 7K _ goods or services; or
(=.R ;!

C) ?Ö( Z
[]T K^k T?$ b) the purchaser becoming legally insolvent.
_vv

Š/ { AE`@ K]T
9:; <= 4/ An application for a refund under this Article
KM EE ^E
P`"( 'K[f:- shall be:
œ) ® `( N@ K]TR EJ
a) in the prescribed form; and
?@ 650ˆ1Š

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12304

C) < %ClE PU( AÀ·E b) lodged with the Authority in the

^nR { AE`@ EU= AE`@ (/) prescribed manner within 12 months from
K]T
P`"
KM .ØE the date of payment of the excise tax, in
PKC[
9:; < [LC the case of an application under Sub-
65 
 (=. KNT ACvv Article (1) of this Article;

r/ { AE`@ K]T KM
P T?( 5/ The amount of a refund of excise tax payable

9:; <= K$E
PU( <= under this Article shall be made in
A=‰ " A+,  ??( K]T accordance with the Tax Administration
;^Jvv Proclamation.

3/  A?" (=. [?V · KU( 6/ If excise tax has been paid on the importation
 (z A?" Ô EGH ;
9:; of excisable goods that have been
subsequently exported the tax shall be
<=
[LC [^  (z A?" Ô
refunded in accordance with the Customs
EGH ;
[LC( <= d!ΠA+,
Proclamation.
 ??( K]T KM ; Tvv

/ { AE`@ EU= AE`@ r K]T 7/ If excise tax has been refunded under Sub-

9:; <= KM [ T? · LGc Article (5) of this Article and the licensed

U$( U( [?Ö( ;
9:; <E person has subsequently recovered the whole
¥Q ;! [›
`C [^R
9:; or part of the excise tax from the purchaser of
<E `C ª `J (=. `C( the goods or services, the licensed person
shall repay the refunded excise tax to the
K$E KM
 T?CE
9:; <=
Authority to the extent that it has been
C< %ClE KKC= ACvv
recovered within 30 days of the recovery.
ª/.
ª/. KM
[LC%D(
9:; <= 31. Excisable Goods Subject to a Refund Liable

P[L%D( EGH
i´ ;! [L`  for Excise Tax on Disposal or Inconsistent
7' (z .N! ;
+Q EE ^
9:; Use
<=
P[L%D( =CK^k
// { A+,
 ??( EE $` ^nR 1/ without prejudice to the provision of this

KM j
L®K%D( 9:; <= Proclamation, when excisable goods in

P[L%D( EGH KÅ [[LC · respect of which a refund of excise Tax has

i´ ;! KÅ [L`  7' (z been paid are subsequently disposed of, or
.N! ;
+Q EE ^R KÅ %;L`c used, in a manner inconsistent with the
n„ EGH— ; [L ;?% T(  purpose for which the refund was granted,

9:; <= ;[L%D+vv the goods shall be liable for the excise tax
that would have been payable on the goods
if the refund had not been granted.
5/ C'JD(! 7'
9:; <= KM 2/ When a person who, being in possession of
j
L®K EG E«
?% U(R EG(E excisable goods in respect of which a refund
KÅ [L`  7' (z CK$`! of excise tax has been granted for any
;! CKi.R
LC? EE ^R EG( purpose, proposes to dispose of, or use, the

Pi.E ;! .N! ;
P(E goods for a purpose inconsistent with the
"" \³< PKC[ C< %ClE purpose for which the refund was granted,
“" 'NT EJ EG( ; [L the person shall furnish the Authority with

P?%(E
9:; <= KL ACvv the particulars of the proposed disposal or
use, and shall pay the excise tax thereon.
?@ 650ˆ1r

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12305

ª5.
ª5. [9:; <= ’
 Td EGH 32. Exempt Excisable Goods Liable for Excise
KU(  A?" (=.
?V ;! CMz Tax on Re-importation or Purchase

+Q EE ^ <
P[L =CK^k
// { A+,
 ??( EE $` ^nR 1/ without prejudice to the provision of this

9[:; <=
P[L%D( EGH Proclamation when excisable goods that
 (z A?" [Ô ;! 7C! A`j have been exported for use as stores on an

› CKE? £ A?Za EE (Q aircraft operating in international traffic are
subsequently unloaded in Ethiopia for home
A(„…E ; [)k ·R CA?" (=.
use, the importer shall be liable to pay
j¦< EE (Q I (=. [z
excise tax on such goods at the rate in force


?Ä EE ^R A=Kg( EGH—
at the time of unloading.

?Ä _ ®Eb %C(
'=[L K³
K]T E{ EGH ;
9:; <=
KL ACvv
5/
9:; <=
P[L%D( EGH [< 2/ Excisable goods imported or purchased free
’  "?(  A?" (=. [?V ;! of excise tax shall be liable for excise tax on
[i´ · KU( CMz [+Q ;! disposal or inconsistent use.
[L`  7' (z .N! ;
+Q
EE ^
9:; <= ;[L%D+vv

ªˆ.
ªˆ. [9:; <= ’
 Td EGH KU( 33. Exempt Excisable Goods Liable for Excise

i´ ;! [L`  7' (z
+Q Tax on Disposal or Inconsistent Use
EE ^ <
P[L =CK^k

// 'JD(! U( [{ A+, " Ž( 1/ When a person imports or purchases

]E$T 5 [9:; <= ’
 Td excisable goods which are exempt from
excise tax under the Second Schedule and
EGH E  A?" (=. =?% ;! [?Æ
the person subsequently disposes of, or
· EGH—E KÊ
i$ ;!
uses, the goods in a manner inconsistent
[L`  7' (z .N! ; +C
with the exemption, the person shall be
EE ^ EGH— i´ ;!
liable to pay excise tax on the goods at the
[L`  7' (z .N! ; +Q rate applicable to goods of that class or
`E ®Eb P]

'=[L  description at the time of disposal or
K]T
9:; <= KL ACvv inconsistent use.
5/ { AE`@ EU= AE`@ (/)
 ??( 2/ Notwithstanding the provisions of Sub-
mn"! [9:; <= ’ ^(  A?" Article (1) of this Article in the case of a
(=.
?V M["H E PKC[ motor vehicle, excise tax shall not be
[<= ’ K
U$(
L.„ U( payable where in the case of a natural

 EJ M["( ("= C
Ù person, that person dies and the ownership

CL [^
9:; < A;[L!vv of the motor vehicle is transferred by way of
bequest to or inheritance by another person.

!E
j U% CHAPTER SEVEN

9:; <=
<= A=‰ " EXCISE TAX ADMINISTRATION
ªŠ.
ªŠ.
<= A=‰ " A+, L’P 34. Application of Tax Administration
Proclamation
{ A+,
 ??( EE $` ^n
<= The Tax Administration Proclamation shall subject
A=‰ " A+,
9:; <= A=‰ "E this Proclamation apply for the purposes of the
PKC[ L’P ;nT+vv administration of this Proclamation.
?@ 650ˆ13

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12306

ªr.
ªr. K? =CK 35. Record keeping

{ A+,
9:; <=
KL Z¹< A person liable to pay excise tax under this

C 'JD(! U( { A+, Proclamation shall keep such records as may be
 ??( EJ %Clk P( specified in this Proclamation or the directive to
KK K]T
: K? K C be issued by the Authority and shall retain the
records for the time period and in the manner,
^ER
P;Ž(E
: K? <=
specified in the Tax Administration
A=‰ " A+, CKC[( _ EJ
Proclamation.
KC[( AÀ·E $¿ '¿
 ACvv
36. Excise Tax Returns
ª3.
ª3.
9:; <=E =C'=<N
'JD(! AEc "
9:; <=
P[L A licensed manufacturer or a supplier of excisable
m^E! %;^E!
L` C A!
services shall submit an excise tax return, in the
approved form and in the prescribed manner, for

EE‰EYE " :
P`.C( " ªx( `E
each calendar month not later than 30 days of the
['CÄ › ® `( N@ EJ <ŽŽ( AÀ·E
succeeding month, whether or not any excise tax
C< %ClE '=<N ACvv
is payable for that month.
ª.
ª.
9:; <=E
KL Z¹<E =CK 37. Payment of Excise Tax
//
L` C A!
AEc " (=. 1/ The excise tax payable by a licensed
['!Tf( h g % TD( EGH manufacturer in respect of excisable goods
; [j
P?%(E
9:; <= removed from a manufacturer's factory during
a calendar month shall be paid not later than

P`.C( " ªx( `E ['CÄ ›
the 30th day of the succeeding month.
C< %ClE ?m 'cTZ ACvv
5/
9:; <=
P[L%D(E A?Zab 2/ The excise tax payable by a supplier of

P`" U( AEc " %`T%D( excisable services in respect of supplies of
A?Zab ; [j
P?%(E <= excisable services made by the supplier during

P`.C( " ªx( `E ['CÄ › a calendar month shall be paid not later than
C< %ClE ?m 'cTZ ACvv the 30th day of the succeeding month.
‹

ˆ/ A=Kg(  A?" (=. %=?%D( 3/ The excise tax payable by an importer in

9:; <= P[L%D( EGH ; respect of the importation of excisable
[j
P?%(E
9:; <= EGH— goods into Ethiopia shall be paid to the
Authority ot Tax at the time of importation.
 A?" (=. ?V _ C<
%ClE KL ACvv
Š/  A?" (=. P?V
9:; <= 4/ For the purpose of assessing, collecting,
P[L%D( EGH ; <
P](R accounting and enforcing the payment of

P[LC(R :V
PŽ( EJ
< E‰ excise tax on the importation of goods into
A=?‰,
PUU( d!ΠZ Ethiopia, the customs law shall apply as if
excise tax were customs duty.
K]T ;^Jvv
CHAPTER EIGHT
!E
j =!E
OFFENCES AND ADMINISTRATIVE PENALTIES

E  .hb J A=‰
 Nb
ªB.. A=‰
 N
ªB 38. Administrative Penalty

// LGc :;nT( { A+, AE`@ 6r (/) 1/ A person who undertakes an activity
(œ) EJ (C)
ŽTŽŒE Z%

P[J(E referred to in Article 15 (1) (a) and (b)
U(
P[C(E A=‰
 N without being licensed to do so shall be
liable to a penalty equal to:
;`:-
?@ 650ˆ1

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12307

œ)
A+« AE`@ 6r (/) (œ) L’P a) double the excise tax that would have

P^EE PKC[ LGc mU$( been payable if the person were licensed
n„ [j ;?%
T(E
9:; in the case of a person to whom Article
<= E.je 15 (1) (a) applies;

C)
A+« AE`@ 6r (/) (C) L’P b) double the amount of excise tax payable

P^EE U( PKC[
9:; in respect of the importation of excisable
š!" C$j%D( P?%
9:; goods requiring an excise stamp, in the
<= C%D( EGH ; [L case of a person to whom Article 15 (1)

P?%(E
9:; <= E.jvv (b) applies.

5/ LGY ; [KC[( –< (z 2/ A licensed manufacturer who manufactures

9:; <=
P[L%D(E EGH excisable goods in premises that are not
'!T Z%" ;
]'

L` C specified on the manufacturer's license as
the factory in which the manufacturer is
A!
EGH— ; [L
P?%(E
permitted to manufacture the goods shall be

9:; <= E.j
?EŽ N
liable to a penalty equal to double the excise
EE [j ;? ‰vv
tax payable on those goods.
ˆ/ { A+, AE`@ yB (/)
 ??( 3/ If under Article 28 (1) has been applied to
L’P P^E \³<
9:; <= deem a licensed manufacturer to have

P[L%D(E EGH [9:; <= removed excisable goods from excise
-.." (z [h( g EE‰ T? control, the manufacturer shall be liable to

P¿$"
L` C A!
EGH— pay a penalty equal to double the excise tax
; [L
P?%(E
9:; <U payable on those goods.
E.j
?EŽ N EE [j ;? ‰vv

Š/ { AE`@
 ??( EE $` ^n 4/ Without prejudice to the provision of this

<= A=‰ " A+,
Q Article, the Tax Administration
A=‰
 Nb C9:; <=! Proclamation shall apply to penalties
L’P ;n
D+vv imposed under this Article.

ª‘.
ª‘. [LGc EJ [9:; <= -.." " 39. Offences Relating to Licensing and Excise

¤
E  .hb Control

// 'Ex(! U(
{E A+, AE`@ 6r(ˆ)R 1/ Any person who contravenes the provisions
6B(Š)R y3(/)R y(/)R ª()R ª/(5) EJ ª5 of Articles 15(3), 18(4), 26(1), 27(1), 30(7),
cE±H E µ K?op j"c # 31(2), and 32 commits an offence and is

T?$ EE ^ [ˆ E=[ r 7K liable if convicted to a rigorous
imprisonment for a term of 3 to 5 years and
CP "= Ìk E=
J [" q0 E=[ /10
a fine of Birr 50,000 to 100, 000.
P "=
?EŽ N ;`vv
5/
L` C A!
LGY [KC[( 2/ A licensed manufacturer commits an offence
lj
(z
9:; <=
P[L%D(E if he manufactures excisable goods in
EGH '!T Z%" ; KU'
p premises that are not specified on the
j"c #
T?$ EE ^ [r E=[  manufacturer's license as the factory in which
7K P "= @k El
 EJ [" /10 such manufacture is permitted and is liable to
E=[ 510 P "=
?EŽ N ;`vv a rigorous imprisonment for a term of 5 to 7
years and a fine of Birr100,000 to 200,000.
?@ 650ˆ1B

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12308

ˆ/
L` C A!
{ A+, AE`@ 6‘ 3/ A licensed person who fails to comply with
(/) EJ 6‘ (5)
 ??(E µ
?o Articles 19 (1) and 19 (2) commits an offence
K^k j"c #
T?$ EE ^ [/ and is liable if convicted to a rigorous
E=[ ˆ 7K P "= @k E=
 EJ imprisonment for a term of 1 to 3 years and a
[" /10 %C$
?EŽ N fine of not more than Birr100, 000.
;`vv

Š/ 'Ex(! U(:- 4/ A person commits an offence if he or she:

œ)
{E A+, AE`@ yr (ˆ) (C) a) removes excisable goods from excise
KCj
9:; <= control in contravention of Article 25 (3)

P[L%D(E EGH [9:; <= (b);
-.." (z ['!Tf( h g
 T? EE ^e

C) LGc :;nT( 9:; <= -.." b) enters any place where excisable goods
l" Q EGH [' ( P?‡ are stored under excise control without
–<
?% EE ^e authorization;
c) is involved in the unauthorized removal,
ž)
9:; <
P[L%D(E
alteration, or interference with excisable
EGH [9:; <= -.." (z
goods under excise control and is liable
%L` KE?c [['— –<
if convicted to a rigorous imprisonment
g 'cTZR %{D(E KC. for a term of 5 to 7 years and a fine of
;!
-..ŒE l
' T?c Birr 100, 000 to 200,000.

%TR EE ^R .hx K^k j"c
# T. [r E=[  7K
P "= Ìk El
J [" /10 E=[
510
?EŽ N ;`vv

r/ { A+, [ ??( (z
KTp 5/ Any person who buys, or, without proper

9:; <=
P[L%D(E EGH authority, receives or has in the person's
;!
9:; <= :;[L%D( possession, any excisable goods that have been
manufactured contrary to the provisions of this
[KTp h g
 Td EGH E
Proclamation, or which have been removed

?Æ ;! :;L`cC E{E EGH
from the place where they ought to have been

`C ;! ;”<( l"  T? ;! charged with excise tax before such tax has

9:; <= [LC%D(E EGH been charged and either paid or secured or
CMz '+ Z%"
]'
'JD(! engaged in the trading of excisable goods on
U( .hx K^k j"c # T?. [ˆ which the tax has not been paid commits an
E=[ r 7K P "= @k E=
 EJ offence and is liable, if convicted, to a rigorous
imprisonment for a term of 3 to 5 years and a
[" /10 E=[ 510 P "=
?EŽ
fine of Birr100, 000 to 200,000.
N ;`vv

3/ { A+, AE`@ y‘ =C9:; š!" 6/ Any person who contravenes Article 29 of

 ??(E µ
?o 'JD(! U( this Proclamation, which provide about
.hx K^k j"c # T?. [5 excise stamps commits an offense and is
E=[ ˆ 7K P "= E=
 EJ [" liable if convicted to an imprisonment for a
term of 3 to 5 years and a fine of Birr
q0 E=[ /10 P "=
?EŽ N
50,000 to 100,000.
;`vv
?@ 650ˆ1‘

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Ò.
<= A=‰ " A+, L’P 40. Applicability of the Tax Administration
Proclamation
{ A+, %iLk
9:; <= E J The provisions of the Tax Administration
A=‰
 .hb ;
<= A=‰ " Proclamation shall be applicable on Excise Tax
A+, cE±H L’P ;^JQvv offences and penalties that are not provided
under this Proclamation.
!E
j Ž$™
¡ ¡ cE±H CHAPTER NINE
MISCELLANEOUS PROVISIONS
Ò/.
Ò/. <= CKL
P TZ =!! 41. Tax Avoidance Schemes
// { A+,
 ??( mn"!R
< 1/ Notwithstanding the provisions of this
%ClE:- Proclamation, if the Authority of Tax is
satisfied that:

œ)
9:; <= CKL
P=  a) a scheme has been entered into or carried
=!!
 T? K^kEe out exsise Tax;

C) 'JD(! U( ;{EE =!! b) a person has obtained a tax benefit in

connection with the scheme;
K$`!
<= .N! ?o K^kEe
c) having regard to the substance of the
ž)
=!!p ;Ž KTK"R
=!!p
scheme, it would be concluded that the
+J 7' ++; ;! € 'JD(!
person, or any other, who entered into or
U(
9:; <= .N! EE ?™ carried out the scheme did so for the sole
K^kE KT‰
Pf [^R
< or main purpose of enabling the person
%ClE =!!p EE‰ T? to obtain the tax benefit, the Authority
K-$"
9:; <= .N! ?o( may determine the excise tax liability of
U(
9:; <E EE [j =E the person who obtained the tax benefit
; vv as if the scheme had not been entered
into or carried out.

5/
< %ClE { AE`@ EU= 2/ If a determination is made in accordace with

AE`@ (/) [?C®( (:³ ;
TU Sub-Article (1) of this Article, the Authority
EE ^ ;{Ek
P?@
(:³ '=<& shall issue an assessment giving effect to the
<E KL C U( K ACvv determination.

ˆ/ { AE`@ EU= AE`@ (/) K]T 3/ A determination in accordace with Sub-

< %ClE (:³ U.
P C( Article (1) of this Article shall be made

9:; <U
KL Z¹<( within 5 years from the last day of the
month in which the excise tax liability
[¼¼K "
K˜TŸ `E  !„ r
arose.
7K _ (=. (vv

Š/ C{ AE`@ AL½¾!:- 4/ In this Article:

œ) “=!!” KZ%%
L®KR Z@ a) “scheme” includes a course of action, or

L®K ;! "d!
P T= an agreement, arrangement, promise,
;! Z › L’P C( m^E! plan, proposal, or undertaking, whether
%;^E! c"_R (ER 'KfDER G express or implied, and whether or not
ˉEER ENcER
(:³ œ:E ;! Z¹< legally enforceable.
KZ%E ;˜!
vv

C) “
<= .N!” 'C:- b) “tax benefit” means:

?@ 650ˆ16

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(/)
9:; <= [KL Z¹< ’ (1) a reduction in the liability of a person
K^EE ˜!„ [L
P?%(E to pay excise tax, including a

9:; <= K$E K`=e reduction of the liability to zero;

(5)
9:; <= KM
'Zo (2) an entitlement to a refund of excise

KE '¼¼!e tax;

(ˆ)
9:; <=
KL Z¹< (3) a postponement of a liability for the

P®JE `E 'ŽZ
e payment of excise tax;

(Š)
9:; <=
P[LE `E (4) any other advantage arising to the
'ŽZ
 € 'JD(E! .N! person because of a delay in
'=?oe payment of excise tax;

(r) [{ <
ŽTŽŒE
P=?™ (5) anything that causes:

.N!:-
œ)
9:; <=
P[L%D( a) excisable goods not to be
excisable goods or excisable
EGH ;! A?Zab <
services not to be excisable

';[L%D( EE ^k 'cTZe
services;

C)
9:; <=
P[L%D( b) excisable goods or excisable

EGH ;! A?Zab A=x services to be subject to a lower

9:; <= EE [L%D( rate of excise tax.
'cTZe
Ò5.
Ò5. EJ KK
'( lE 42. Regulation and Directive
‹

//
P©=„ !" # C{ A+, AL’®! 1/ The Council of Ministers may issue

PZ E  ; vv Regulation for the better carrying out of the
provisions of this Proclamation.
5/ P©=Œ C{ A+, EJ { AE`@ EU= 2/ The Minister shall issue directives for the
AE`@ (/) K]T CP E AL’®! proper implementation of this Proclamation
KK  ; vv and Regulation to be issued in accordance
‹
with Sub-Article (1) of this Article.

҈.
҈.
Ki? cE±H 43. Transitional Provisions
// { A+, !E
j ˆ j / LGc 1/ Notwithstanding Chapter 3 Part 1 of this
=C'(
 ??( mn"!
9:; proclamation, which provides about
<=
P[L%D(E EGH '!T ;! licensing, persons engaged in the
A?Za K=$
]'
'JD(! U( manufacture of excisable goods and
LGc %;nT(! ;! %;KŽ?! ;{ provision of services may continue to do so
A+, [ `E AE=b E=[ 3 " cT= for 6 months from the date of issuance of

9:; <=
P[L%D(E EGH this Proclamation without having the

'!T ;!  A?" (=.
'=?% license.
;! A?Za
K=$ l
'[JE
; vv
5/ ;{ A+, [®J `E › KTp 2/ Excise tax shall be assessed and collected in

9:; <= %[LC%D( EGH ; accordance with this Proclamation on
excisable goods produced before the

9:; <=
P](J
PUU(
enactment of this Proclamation on which
{ A+, K]T ;^Jvv
excise tax is not paid.
?@ 650ˆ16/

   -." yr Km B `E 5065 7.! Federal Negarit Gazette No. 25 17th March, 2020…page 12311

ˆ/ ;{ A+, [¾J `E ›
%E LGc 3/ Excise tax on goods to be imported into
UD(J A+« l
; [+C `E Ethiopia, for which Letter of Credit has
AE=b =c= " _ (=.  A?" been opened prior to the enactment of this
P?V EGH ;
9:; <= Proclamation, and imported with in six
months since the proclamation came in to

PC(J
PUU( 9:; <=
force shall be assessed and collected in
A+, -." ˆ1/6‘1¨r (EE ŸŸC)
accordance with the Excise Tax
cE±H KUT ;^Jvv"
Proclamation N0. 307/2002 (as amended).
Š/ ;{ A+, [®J `E › KUU 4/ Excise tax due prior to the enactment of this
n" UU
9:; <= Proclamation shall be assessed and collected
9:; <= A+, -." ˆ1/6‘1¨r in accordance with the Excise Tax
(EE ŸŸC) cE±H K]T ;U=%vv Proclamation No. 307/2002. (as amended)

Ҋ.
Ҋ.
ŸŒJ L’P
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D( X 44. Laws Repealed and Not applicable

//
9:; <= A+, ˆ1/6‘1¨r 1/ The Excise Tax Proclamation No.307/2002

(EE ŸŸC) M„ { A+, Õvv (as amended) is hereby repealed and
replaced by this Proclamation.

5/ [{ A+, "
PGTE 'JD(! ZR 2/ Any law, directive or procedure which is not
KK ;! A]
" ;{EE A+, consistent with this Proclamation shall not
PKC[ L’P A;nT(!vv be applicable on matters provided by this
Proclamation.

Òr.
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P®J _ 45. Effective Date

;{ A+,   !" # [¾ ` This Proclamation shall enter into force on the
[
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®J ;^Jvv date of its ratified 13th day of February 2020 by
House of People’s of Representatives.

A = A% Km B `E 5065 7.! Done at Addis Ababa this 17th day of March 2020

:{C"N Ž(¹ SAHLEWORK ZEWDIE

I ¹
 
 PRESIDENT OF THE FEDERAL DEMOCRATIC

 …ȁ‰E REPUBLIC OF ETHIOPIA