Ethiopia's Finance Minister, Ahmed Shide, announced that revenues collected from fuel taxes will be channeled directly into road maintenance and fuel subsidies. The Minister made the statement during his clarification of the 2018 draft budget at the 35th regular session of the House of People's Representatives.
Minister Ahmed revealed that Ethiopia's economic forecasts project the country will import $4 billion worth of fuel in the upcoming 2018 fiscal year. To help manage this, the government plans to fully implement a 15% excise and value-added tax on fuel throughout the entire fiscal year.
"The revenue collected from these fuel taxes will be deposited into the government treasury and subsequently used for road maintenance and fuel subsidies," Minister Ahmed affirmed.
Looking ahead, the Minister also indicated the government's intention to introduce a Motor Vehicles Circulation Tax on fuel-powered vehicles. This move, alongside the continued tax incentives for electric vehicles, underscores ongoing efforts to reduce overall fuel consumption within the country.