The Confederation of Ethiopian Trade Unions (CETU) has revealed concerning financial trends, indicating that its expenses have been increasing by an average of 18% over the past five years, outpacing a gross revenue growth of only 12%. This information was presented during CETU’s 20th Annual General Meeting, where a five-year audit committee report was shared with its members.

The audit report covering the fiscal years from 2019 to 2024 highlighted that while the organization recorded a profit of 3.948 million birr in the 2019/20 budget year, subsequent years saw a significant rise in expenditures. As a result, CETU’s revenue began to fall short of its expenses, leading to a decline in net capital.

The report warned that if current spending trends continue, CETU’s operational viability could be jeopardized, posing an existential threat to the organization. For the 2023/24 financial year, CETU had planned to generate over 81 million birr but ended up spending more than 89 million birr—105% of its budgeted expenditure.

The increase in costs has been attributed primarily to education and training projects funded by donors without proper planning. During the meeting, Kassahun Follo, President of CETU, emphasized the importance of addressing these financial issues to safeguard the interests of over one million workers represented by the union across 2,300 grassroots trade unions.

Kassahun also noted that despite facing resource constraints and operational inefficiencies, CETU remains committed to advocating for workers’ rights and addressing pressing issues such as minimum wage adjustments and income tax reductions.

The audit committee reported that out of 4,163 employee complaints filed in court since 2020/21, only 169 were resolved in favor of employees. This statistic underscores ongoing challenges within the legal framework supporting workers’ rights.

As CETU continues to navigate these financial hurdles, it has called for immediate action to address the plight of employees who are struggling to meet basic needs. The confederation reiterated its commitment to enhancing worker welfare and ensuring that their voices are heard in discussions about labor policies.

Car importers have raised serious concerns about excessive taxation and the freezing of their bank accounts, alleging that their funds are being illegally diverted to government coffers. According to a letter from the Addis Ababa City Revenue Bureau, traders who fail to comply with tax demands face account suspensions, leading to significant financial losses.

Importers have reported that their accounts were frozen due to the volume of money being transferred, claiming that these actions are unlawful. They argue that the government is monitoring financial transactions closely, with funds being redirected to cover budget deficits rather than supporting local businesses.

Legal experts consulted by Capital emphasized that while the law allows for income taxation based on authorized rates, there are strict procedures that must be followed. They noted that after an account is frozen due to non-compliance, authorities can only enforce tax collection based on proper assessments and cannot indefinitely hold funds as debts.

Many importers, who wished to remain anonymous for safety reasons, expressed frustration over the lack of transparency regarding new tax regulations. They argued that they should be informed of any legal changes in advance, allowing them to adjust their operations accordingly.

The importers criticized the recent directive from the Ministry of Revenue, claiming it disproportionately targets car importers in Addis Ababa. They argue that the taxes imposed under this directive are unnecessary and unlawful, stating that taxation should be based on established laws rather than arbitrary assessments.

The importers highlighted that while macroeconomic reforms are necessary for economic growth, tax policies should not hinder local businesses or create barriers to competition with international firms.

As the situation unfolds, car importers have reported significant increases in vehicle prices. For example, a standard automobile now costs approximately 1.8 million birr, while a Corolla Cross is priced at 7 million birr. The rising costs are attributed to increased taxes and regulatory burdens imposed on local businesses.

Despite these challenges, importers remain committed to advocating for fair treatment and transparency in tax policies. They emphasize the importance of creating an environment conducive to local business growth rather than one that stifles competition and innovation.