PROCLAMATION NO.
99/1998
A PROCLAMATION TO
PROVIDE FOR THE PAYMENT OF TAX ON COFFEE EXPORTED FROM ETHIOPIA
WHEREAS, consolidating the various taxes and duties levied
by different Proclamations and Regulations into a single tax facilities
execution;
WHEREAS, converting specific rates into advalorem ensures
the equability of the tax;
WHEREAS, it is necessary to lay down procedures to protect
revenue against fluctuations due to change in prices and adjust the tax rate
following market trend.
NOW THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
1. Short Title
This Proclamation may be cited as "Tax on Coffee
Exported from Ethiopia Proclamation No. 99/1998."
2. Definitions
In this Proclamation:
1) "FOB" means selling price of coffee quoted at
the port of loading, agreed between the Coffee exporter and his customer and
approved by the National Bank of Ethiopia, from which freight and insurance
costs are excluded.
2) "Tax" means the tax payable on Coffee exported
in accordance with this Proclamation.
3. Basis of Computation of
Tax
The FOB price of the coffee exported shall be the basis for
the computation of the tax.
4. Rate of the Tax
The rate of the Tax shall be 6.5%(six and half per cent) of
the FOB price.
5. Collection of the Tax
The Tax on Coffee exported shall
be computed and collected by the Customs Authority.
6. Payment of the Tax
1) The Tax shall be paid at the
Customs Station where the Coffee is declared for export.
2) If the Coffee is not exported on the date on which it
shall have been exported and in the meantime the Council of Ministers increased
the rate of the Tax, the exporter shall pay the difference between the
increased rate and the rate that has actually been paid.
7. Refund
No refund to Tax once paid will be made.
8. Power to Issue
Regulations
The Council of Ministers is
hereby empowered to issue regulations amending the rate of the Tax specified
under Article 4 of this Proclamation following fluctuations in the quantity and
price of Coffee exported.
9. Duty to Cooperate
1) Any person or organization has the duty to co-operate
with the Customs Authority in the implementation of this Proclamation.
2) The National Bank of Ethiopia has the duty to cooperate
with the Customs Authority in the supply of information regarding the sales
date of the Coffee, contract number, the name and address of the exporter, the
quantity and price of the Coffee.
10. Formalities
The provisions concerning customs
formalities of export merchandise under the Re-Establishment and Modernization
of Customs Authority proclamation No. 60/1997 shall apply to Tax payable in
accordance with this Proclamation.
11. Repeals
The following laws are hereby repealed:
1) Transaction Tax Proclamation No. 205/1963
2) The third schedule (export duties) attached to the
Customs Tariffs Regulation No. 42.1976.
3) Coffee Surtax Regulation No. 280/1964 and all subsequent
amendments.
4) Cess on Coffee Exported from Ethiopia Regulations No.
47/1976.
12. Transitory Provisions
Customs duty, transaction tax,
Surtax and Cess due prior to the coming into force of this Proclamation shall
be paid in accordance with the relevant laws then in force.
13. Effective Date
This Proclamation shall enter
into force as of the 19th day of February, 1998.
Addis Ababa, this 19th day of February, 1998.
NEGASO GIDADA (DR.)
PRESIDENT OF THE FEDERAL DEMOCRATIC
REPUBLIC OF ETHIOPIA
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