ADDIS ABEBA – Excise tax levied on raw animal hides and skins export has been lifted, the Ministry of Trade and Industry (MoTI) said, after a fall in external demand for the nation’s leather product.
Ethiopia imposed a 150 percent tax in 2008 in a bid to boost the domestic leather industry and discourage shipment of unprocessed and semi-processed material.
Currently, the ministry said there is a significant accumulation of the products due to a fall in external demand for the nation’s leather product.
In order to avoid these problems, the Ministry said it has lifted the excise tax levied on animal skin and hide.
The central bank reported fall in export earnings of Ethiopia’s leather and leather products of 11.4% to 117.4 million U.S. dollars in the fiscal year ending in July, reports say.
Ministry of Trade said the decision would enable the leather industry to stimulate the export sector and empower the investors.
Ethiopia has Africa’s largest population of livestock with 60 million livestock, according to United Nations estimates.