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Excise Tax Control System Directive

Ministry of Revenues1079/2025

Summary

This directive establishes the Excise Tax Control System, detailing the types of excise stamps (physical and digital), how they should be affixed to various excisable goods, and the application and affixing timelines. It also outlines requirements for manufacturers, including licensing, technological equipment, counting and measuring devices, bookkeeping, and reporting. Wholesalers and retailers are obligated to verify the presence of excise stamps and read QR codes on products.

Who's affected

Manufacturers and importers of excisable goods, including producers of spirits, beer, wine, beverages, tobacco products, bottled water, and perfumes, as well as wholesalers and retailers of these products.

Action required

Manufacturers and importers must apply for and affix the correct excise stamps to their products as specified in the directive. Wholesalers and retailers must verify that products have the required stamps before receiving them.

Key points

8
  • Directive establishes a new Excise Tax Control System.
  • Two types of excise stamps are defined: physical and digital.
  • Specific requirements for affixing and security of stamps are detailed.
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    • A clear list of excisable goods requiring stamps is provided.
    • Manufacturers face stringent requirements for licensing, technology, measurement, and record-keeping.
    • Import procedures for stamping are outlined.
    • Wholesalers and retailers have verification obligations.
    • Penalties for non-compliance are specified.

Requirements

8
  • Physical excise stamps must be affixed vertically (strip stamps) or to the top of the closure (round stamps) and be irreparably damaged when opened.
  • Digital excise stamps must be legible by a stamp reader and affixed to the container.
  • Excise stamps must be affixed before products pass an excise tax line.
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    • Manufacturers must install technological equipment for remote monitoring of production and activities.
    • Accurate counting and measuring devices must be used for raw materials and excise goods.
    • Manufacturers must maintain detailed records of production, raw material usage, inventory, and sales.
    • Manufacturers must submit monthly price lists, cost of goods calculations, and excise tax declaration forms.
    • Wholesalers and retailers must ensure physical or digital stamps are affixed and read QR codes on products.

Rights and permissions

8
  • Manufacturers operating an automated packaging line may apply to use digital stamps.
  • The Ministry of Revenues may approve applications for digital stamps based on automated packaging lines.
  • The Ministry of Revenue may request additional information from manufacturers on a case-by-case basis.
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    • The Ministry of Revenues shall have unrestricted access to manufacturers' monitoring systems.
    • The Ministry of Revenues shall be able to access the system at any time and view the movement of any goods.
    • Imported goods are temporarily exempt from excise tax during transport to stamping locations in Ethiopia, using an inland transit document.
    • The Commission may accommodate late pre-notification for imported goods due to reasons beyond the importer's control.
    • Quantities of product used for laboratory analysis during testing purposes may be relieved from excise tax charge.

Restrictions

16
  • Excise stamps must be affixed on specific excisable goods listed in Article 4.
  • Goods listed in Article 4 must be stamped before being packaged for wholesale and retail markets.
  • Physical excise stamps must be from 50-70 grams.
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    • Physical excise stamps must not be capable of being used again once fixed.
    • Secret marks on physical stamps cannot be copied, imitated, or destroyed by using chemicals.
    • Digital stamps on returnable bottles must be fixed to the lid.
    • For non-returnable packaging, digital stamps must be affixed to a visible area or lid.
    • Manufacturers must reconcile flow meter recordings with packaged quantities and notify the Ministry of Revenues of any losses.
    • Manufacturers must track goods using bar code scanning or an agreed manual methodology.
    • Manufacturers must record the quantity of tobacco re-processed.
    • Flow meters and weighing machines must be ISO certified and calibrated regularly.
    • Manufacturers must submit monthly reports and pay excise tax by the 30th of each month.
    • Manufacturing for testing purposes shall not continue for over a month.
    • Excisable goods dispatched from a licensed factory with a known sale must be accompanied by a delivery document and sales receipt.
    • If excise goods are sold outside the factory, drivers or salespersons must maintain specific records.
    • Wholesalers and retailers must fulfill their obligations regarding stamps and QR codes.

Penalties

3
  • Any person found carrying goods outside the excise tax line from a manufacturing facility without an excise stamp or mark shall be subject to criminal liability.
  • Wholesalers and Retailers who fail to fulfill their obligations shall be liable to criminal penalties under the Excise Tax Proclamation No. 1186/2020.
  • Failure to submit relevant forms and pay excise tax on time will result in administrative penalties pursuant to Tax Administration Proclamation No. 983/2016.

Objectives

4
  • To determine the type of excise stamp to be affixed on each excisable good.
  • To establish the mechanism by which excise stamps shall be affixed to each category or sub-category of excisable goods.
  • To ensure efficient and effective monitoring of the excise stamp system's performance.
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    • To ensure overall excise tax compliance.

Organizations

2
  • Ministry of Revenues
  • Customs Commission

Legal references

2
  • Excise Tax Proclamation No. 1186/2020
  • Tax Administration Proclamation No. 983/2016
Original sourcehttps://justice.gov.et/en/directives/excise-tax-control-system-directive-no-1079-2025/
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