MoF issues massive new customs levy

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Ministry of Finance has issued massive new customs levy on different items that has become effective as of December 2.
The tariff revision targets to boost the government revenue. Experts on the sector told Capital that the revision is imposed on selected products that would not have effect on the market or inflation.
The revised tariff duty that is to be applied by Customs Commission has been issued on December 1 to be effective as of the next day.
The duty revision included a wide range of products that include building materials, consumer goods and other products in the manufacturing industry and parts for vehicles and others.
In its cover letter with the revised table that MoF wrote to the Ministry of Revenue and the commission has per the regulation of the Council of Minister given to MoF in 2008 it has revised the tariff on selected items.
It added that the revision is taken under the aim to get additional revenue on selected items.
As per the evaluation of Capital at the revised table most of the commodities that are included on the revision are either processed and luxury products.
Senior tariff expert at Ministry of Revenue told Capital that the revision selects the product that would not have the general public and will boost the government revenue.
He expressed his expectation that it would not have any effect on the inflation, which shows increment in the past few months.
Several organizations like the World Bank and International Monetary Fund recommended the government to expand its revenue from tax and duty. The country revenue secured from tax and duty is very low compared with the regional average in comparison with GDP tax ratio.
The government has been conducting several studies including supporting of the stated international organization and others to improve its revenue and expand the tax base.
According to the latest revision it has upped to the maximum of 35 percent. Most of the revision is five percent increment that is from 30 percent to 35 percent, but there are some items that have risen up to 25 percent from the previous 10 percent rate to 35 percent.
Luxury consumers goods like sweets and coffee products , human hair, gum, prepared meat or fish or of crustaceans, molasses or other aquatic invertebrates, cocoa and cocoa products, candles and on other related products the tariff has climbed to 35 percent that was 30 and below in the previous rate.
Some products from vegetables, fruit, nuts and other edible parts of plants prepared or preserved by vinegar or acetic acid have also been included in the revision list of up to 30 percent but some specific products duty has rose to 35 percent.
Other products like cement products, photographic papers, toilet papers and other facial tissues and towels, some fabrics and selected home appliance and house furnishing materials, iron sheets, vehicles engines with different cylinder capacity , primary cells and primary batteries, parts and accessories of the motor vehicles of headings, different type of watches, different furniture are the products that are included on the revision, while industrial inputs have also been included on the revision.
Capital’s effort to get further information from Debele Kebeta, Commissioner of Customs Commission was unfruitful, while on the letter he wrote for different divisions at the commission stated that the MoF revision has come as per the macroeconomic direction and ordered to be effective for products that are arrived at customs as of Wednesday December 2.