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Taxi vehicle tax and tax free requests are not recognized by the Ministry of Finance!

- Ministry of Finance

#Ethiopia The Ministry of Finance announced that requests for taxi vehicle tax and tax exemption are not approved by the Ministry of Finance.

In his explanation, the minister reminded that the Lada taxis in the capital will be replaced with new ones to save the owners from high fuel and spare parts costs due to the aging of the vehicles.

In addition, he mentioned that new vehicles that replace used Ladas should be exempted from taxes in order to benefit from being competitive in the market, to reduce environmental pollution, to improve the image of the city and to modernize the transport sector.

According to the provisions regarding submission and approval of requests for tax and tax exemption for taxi vehicles, tax and tax exemption requests for taxi vehicles will be processed only when the vehicles that replace used Lada taxis are completely (partially) dispersed and brought into the country and assembled in the country.

The explanation also indicated that the focus on new taxi associations will only be determined by the national transport policy and strategy prepared by the Ministry of Transport and Logistics as the need of the transport sector.

According to this, requests submitted will be dealt with only in accordance with the directive No. 70/2013 issued for this purpose, he said.

The Ministry of Finance has announced that a clear request presentation and authorization system has been established in this directive, and especially according to Article 10 of the directive, tax and tax-free requests for vehicles used for taxi service can only be submitted in the following way.

State governments, city administrations, and federal and government offices, when the request of taxi service associations that want to buy vehicles for tax-free taxi services is sent to the Ministry of Transport and Logistics along with a letter of support;

The Ministry of Transport and Logistics sends the taxi association's tax payer's account, business registration certificate, vehicle's libre and other necessary information to the Ministry of Finance;

The Ministry of Finance explained that after examining the relevance and evidence of the submitted request, it will send it to the Customs Commission by giving the tax exemption.

Requests made outside of these guidelines are not accepted as they are not accepted and requests for tax and tax exemptions submitted outside of the guidelines are not recognized by the Ministry of Finance. He called on the public to protect themselves from those who claim to organize associations, tax and tax exemptions outside of the mentioned legal procedure.

In order to modernize the transport sector and to replace the "Lada taxi" vehicles that have been in service for a long time with new vehicles, the government has issued and put into effect the directive number 70/2013.