Proposed Amendment Expected to Improve Services as Business Community Raises Key Concerns
Addis Ababa, Ethiopia — The South Ethiopia Chamber of Commerce and Sectoral Associations (SECCSA) has participated in a public consultation forum on the Draft Federal Tax Administration Amendment Proclamation, representing the voice and concerns of the business community.
The public consultation was organized by the Plan, Budget and Finance Affairs Standing Committee of the House of Peoples’ Representatives to gather views and feedback from relevant stakeholders on the proposed amendments to the Federal Tax Administration Proclamation.
Representing SECCSA at the forum, the Chamber’s President, Engineer Bogale Bitane Menza, expressed support for the proposed amendments, noting that the reform is expected to address and alleviate many of the challenges currently faced by taxpayers and the wider business community.
At the same time, the President raised several important issues requiring further clarification and consideration to ensure that the amended proclamation creates a fair, predictable, and business-friendly tax administration environment.
Key Issues Raised by the Business Community
During the discussion, SECCSA highlighted the following major concerns:
1. The Ten-Year Statute of Limitations
A key concern was raised regarding the provision that may allow authorities to revisit tax matters for up to ten years in cases involving suspected tax fraud.
SECCSA emphasized the need to carefully consider the potential implications of such an extended period on businesses and taxpayers, particularly in relation to legal certainty, record-keeping requirements, and the overall business environment.
2. Alternative Dispute Resolution through Arbitration
The Chamber also raised questions regarding the proposed use of alternative arbitration mechanisms for resolving tax-related disputes.
SECCSA emphasized the importance of establishing clear and transparent procedures that enable disputes to be resolved fairly and independently through appropriate alternative dispute resolution mechanisms.
3. Independence and Structure of the Mediation Mechanism
Another key issue raised concerned the role and institutional structure of the proposed mediation mechanism.
The Chamber stressed the importance of ensuring that any mediation body established under the amended legal framework is fully independent, impartial, and appropriately structured to gain the trust and confidence of taxpayers and the business community.
4. The Thirty-Day Appeal Period
SECCSA also raised concerns regarding the 30-day period provided for submitting appeals, noting the importance of ensuring that taxpayers are given adequate and practical opportunities to exercise their right to appeal.
The Chamber called for careful consideration of the implementation and adequacy of the appeal period, particularly in relation to complex tax disputes and the operational realities faced by businesses.
Response from Government Representatives
During the consultation, the Chairperson of the Standing Committee, Honorable Ato Desalegn Wodaje, and the Deputy Chairperson, Honorable Dr. Abraham Alemayehu, stated that the draft proclamation is intended to address significant challenges faced by taxpayers and improve the overall tax administration system.
Regarding the proposed mediation mechanism, they indicated that the Standing Committee would further deliberate on the matter and consider the establishment of an autonomous and independent mediation body.
The State Minister for Tax Operations at the Ministry of Revenues, Honorable W/ro Yasmin Wehabrebi, also explained that the proposed amendment has been developed to provide solutions to current and pressing challenges within the tax administration system.
She further emphasized that the proposed mediation mechanism is intended to operate independently, contributing to a fairer and more effective dispute-resolution process.
SECCSA’s Commitment
SECCSA remains committed to actively following and engaging in legal and policy reforms that affect Ethiopia’s private sector.
The Chamber believes that a competitive, healthy, and sustainable private sector requires a legal and regulatory environment that protects the rights and interests of businesses while ensuring transparency, accountability, and effective public administration.
SECCSA will continue to advocate for reforms that promote a fair, predictable, transparent, and business-friendly environment, while ensuring that the concerns and perspectives of the business community are adequately represented in national policy and legislative discussions.
The Chamber remains committed to being a strong voice for the private sector and to contributing constructively to the development of a competitive and resilient Ethiopian economy.
