NewTax

A Directive to Exempt Goods from Social Welfare Levy Imposed on Import of Goods (Directive No. 1023/2024)

Ministry of Finance1023/2024

Summary

This directive, issued by the Ministry of Finance, specifies the goods that are exempt from the Social Welfare Levy imposed on imported goods. It outlines the conditions and evidence required for these exemptions.

Who's affected

Importers of goods into Ethiopia, particularly those importing donations for social welfare institutions, humanitarian aid, or goods covered by international agreements, as well as certain government entities.

Action required

Importers seeking exemption must provide specific documentation, including donation certificates, invoices, and support letters from relevant government bodies.

Key points

5
  • Defines exemptions from Social Welfare Levy on imported goods.
  • Lists specific categories of goods and institutions eligible for exemption.
  • Specifies goods that remain subject to the levy (e.g., certain vehicles, office equipment).
    • Show 2 more
    • Requires submission of supporting documents for exemptions.
    • Assigns monitoring and reporting responsibilities to the Customs Commission.

Requirements

8
  • Goods donated to specified social welfare institutions are exempt.
  • Goods donated for calamity relief are exempt.
  • Goods exempt under international agreements are exempt.
    • Show 5 more
    • Defense and public security equipment imported by specified government bodies are exempt.
    • Coins, bank notes, silver, and gold imported by the National Bank of Ethiopia are exempt.
    • Donation certificate must be provided for exempt goods.
    • List of items and invoice showing value must be provided.
    • Support letter from the appropriate government institution confirming purpose and reporting commitment is required.

Rights and permissions

4
  • Right to import specified goods free from Social Welfare Levy upon meeting requirements.
  • Right to import goods donated for public education and health services without levy.
  • Right to import goods for calamity relief without levy.
    • Show 1 more
    • Right to import goods covered by international tax/duty exemptions without social levy.

Restrictions

3
  • Automobiles with less than eight passenger seats and their spare parts are not exempt.
  • Pickup vehicles with one or two cabins and their spare parts are not exempt.
  • Equipment and materials for office use are not exempt.

Objectives

7
  • To exempt goods freely given for the improvement of education and health services from the Social Welfare Levy.
  • To assist citizens impoverished by natural and man-made calamities by exempting donated goods from the levy.
  • To exempt goods that are already tax-exempt under international agreements from the Social Welfare Levy.
    • Show 4 more
    • To define specific goods and institutions eligible for exemption.
    • To outline goods that are not eligible for exemption.
    • To specify the evidence required for claiming exemptions.
    • To define the responsibilities of the Customs Commission in monitoring exemptions.

Organizations

8
  • Ministry of Finance
  • Customs Commission
  • Ministry of Justice
    • Show 5 more
    • Ministry of Defense
    • Federal Police
    • Regional Police
    • National Intelligence and Security Services
    • National Bank of Ethiopia

Legal references

1
  • Social Welfare Levy on Imported Goods Regulation No. 519/2022, Article 6(3)
Original sourcehttps://justice.gov.et/en/directives/a-directive-to-exempt-goods-from-social-welfare-levy-imposed-on-import-of-goods-directive-no-1023-2024/
View source