Ethiopia tax exempts electric vehicles
Ethiopia tax exempts electric vehicles
According to the Ministry of Finance of Ethiopia, electric vehicles are exempted from VAT, excise and sur Sur taxes.
According to a statement shared by the Ministry on its official social media site, the import tax for electric vehicles has been reduced. According to the Ministry’s new directive, the tax rate for fully imported electric vehicles has dropped to 15%, while semi-assembled vehicles will be taxed only 5%.
The Ministry’s decision is expected to encourage investment in electric car assembly and import. It is also expected that it will benefit the final consumers by allowing them to have affordable vehicles. Ethiopia has been importing fully assembled and semi-assembled electrical cars for several years. Owned by Ethiopia’s Olympic Gold medalist Haile Gebressilasse, Marathon Motors has been involved with the assembly of electric cars.
Recent developments include Green Tech Africa also imported dozens electric carsThe company expressed its desire to start assembling some 5,000 vehicles locally in a relatively short time.
Due to high import taxes, cars in Ethiopia are among the most expensive. This is due to the fact that they can be difficult to find. A huge profit per vehicle is more than Japanese manufacturing companies. The Government has been encouraging the importation of new cars over the past few years, lowering the import tax to try and discourage used vehicle imports that are often associated pollution and road traffic accident.
Source: newbusinessethiopia
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