Ethopia government lifts taxes on leather exports
08/01/2020
Lifting the tax is hoped to encourage encouraging exports as the global market’s demand for finished leather decreases. According to the report, lifting the tax should help the leather sector bring in more revenue while strengthening the financial capacity of leather industry investors.
For context, Ethiopia imposed 150% tax in 2008 to “boost domestic leather industry and discourage shipment of unprocessed and semi-processed material”, according to Bloomberg Tax; more recently, export earnings of Ethiopia’s leather and leather products were said to have fallen 11.4% to $117.4 million in the fiscal year ending in July.
Ethiopia has Africa’s largest population of livestock, Bloomberg added, citing the United Nations’ estimate of 60 million livestock.
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