ADDIS ABEBA – Ethiopian government has allowed tax free import of agricultural mechanization, irrigation and animal feed technologies, and equipment to the country.
The decision, which became effective as of May 3, 2019, made by Ministry of Finance (MoF) based on a recommendation made by two other government offices.
The two offices, Agricultural Transformation Agency (ATA) and Ministry of Agriculture (MoA), initiated the tax reform policy by conducting a cost-benefit analysis.
The two offices identified and listed the equipment to be imported tax-free for finance minister’s approval.
In a letter signed by the state minister Eyob Tekalegn, ministry of finance revealed its decision to make 40 agriculture technologies including Surface and submercsible pumps tax free.
“Based on the study recommendation by ATA, the Agricultural Transformation Council provided direction to facilitate farmers’ access to agricultural technologies which will ensure food security at the household level and national nutrition development, the MoA formally submitted the tax wavering request in December 2018,” ATA said in a statement.
This tax reform is aimed at enhancing the agriculture sector by removing duty and taxes on imports of farming machinery, irrigation and drainage equipment as well as animal feed ingredients and technologies.
It is also expected to provide incentives to invest in the importation and local production of these technologies, said ATA in a statement released on Thursday.