Ethiopian Excise Tax Laws Quiz
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Questions and Answers

What is the tax base for the computation of excise taxes for locally produced goods according to the original law (Proclamation No. 307/2002)?

  • Cost of production (correct)
  • Ex-factory price excluding VAT
  • Cost of production plus applicable customs duty
  • CIF value plus applicable customs duty
  • What created administrative challenges for the tax authority in the computation and validation of the tax base for locally produced goods?

  • Ex-factory price
  • Cost of production (correct)
  • Applicable customs duty
  • CIF value
  • What is the tax base for the computation of excise taxes for locally produced goods according to the new excise tax proclamation (No. 1186/2020) issued in 2020?

  • Cost of production
  • CIF value plus applicable customs duty
  • Cost of production excluding VAT
  • Ex-factory price excluding VAT, excise stamps, and returnable containers (correct)
  • What do the excise duty rates now range from?

    <p>0% to 500%</p> Signup and view all the answers

    What type of items are subject to excise tax based on the new proclamation (No. 1186/2020)?

    <p>Demand-inelastic, luxury items, and goods with negative externalities</p> Signup and view all the answers

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