Ethiopia's Minister of Finance, Ahmed Shide, has assured the public that no new taxes have been imposed on fuel that would lead to a price increase. His statement came during the 41st regular session of the House of People's Representatives, where discussions are underway on the Federal Government's 2018 draft budget.
Responding to inquiries from Members of Parliament, Minister Ahmed clarified, "There is no new tax beyond what the Council had previously imposed on fuel." He reminded the legislative body that the existing fuel tax had been approved by them earlier, though it had not been fully collected, with only half of the approved amount gathered through fuel companies.
Minister Ahmed elaborated on a significant change in the collection process. He explained that a decision by the Council of Ministers mandated that the collected tax be used for subsidies. Now, as part of a reform to enhance financial transparency in tax collection, the tax will be directly collected by the Customs Commission and deposited into the Ministry of Finance's account before being disbursed for subsidies.
"This procedural adjustment is not a decision that will directly lead to a fuel price increase," the Minister stressed, aiming to allay public concerns about rising costs. He added that relevant authorities would determine the exact amount of the existing fuel tax to be collected, taking into account current market conditions.
In recognition of the economic pressures faced by the public, Minister Ahmed highlighted the implementation of the highest social subsidy in the current fiscal year, which he confirmed would continue to some extent next year. He specifically noted the strengthening of the fertilizer subsidy, underscoring the government's firm commitment to this initiative.