Ethiopia to Enforce New 30% Fuel Tax

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Ethiopia will introduce a combined 30% tax on fuel next month as part of its move toward full cost recovery and the phase-out of long-standing fuel subsidies. The new charges, 15% VAT and 15% excise tax, will be collected by the Ethiopian Petroleum Supply Enterprise and remitted directly to the Ministry of Revenues. Officials say the reform aims to ease fiscal pressures, curb subsidy spending, and boost domestic revenue while maintaining targeted support for low-income transport users.