Cabinet Moves to Overhaul Tax Administration System

• Amendments aim to align tax regime with global standards, strengthen dispute resolution

Ethiopia’s Council of Ministers has approved draft amendments to the country’s federal tax administration law, part of a broader effort to modernize revenue collection and improve transparency in the tax system.

The proposed revisions to the Federal Tax Administration Proclamation No. 983/2016 were discussed during the Cabinet’s 55th regular session and unanimously endorsed for submission to Parliament.

According to the government, the amendments are intended to reflect major economic changes that have taken place in recent years and to align Ethiopia’s tax administration framework with international best practices.

The reforms also seek to improve the handling of tax disputes through what officials described as fair, peaceful and efficient mechanisms, while strengthening accountability and transparency in tax enforcement.

The Cabinet said the revised framework is designed to enhance implementation of tax laws and improve administrative efficiency as Ethiopia pushes ahead with broader macroeconomic and institutional reforms.

The proposed legislation will now be forwarded to the House of Peoples’ Representatives for debate and ratification.

المصدر: The Reporter (Ethiopia)