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Volume 20 No. 1008, SUNDAY, August 25, 2019 Content Matters

                                                                                T e n ( 1 0 ) b i r r o n ly                                        Lawmakers
Ministry Removes Industrial Inputs Privileges                                                                                                      Controversial,
Imported complete and semi knocked-down inputs will no longer receive privileges                                                                 Electoral Law
Imported complete knocked-
     down and semi knocked-                By FASIKA TADESSE                                                  tax privileges for semi and fully          By KALEAB GIRMA
     down industrial inputs will not     FORTUNE STAFF WRITER                                                 disassembled items with the main
     be getting a special privilege                                                                           aim of encouraging local assembly.      FORTUNE STAFF WRITER
beginning this November, according    with reduced customs or duty-free
                                      tariffs.                                                                “Until the Ethiopian Investment      Candidates who run for a
                                                                                                              Commission and the Ministry          parliamentary seat should bring
to the revised customs tariff issued These raw materials were classified                                                                           3,000 endorsement signatures
by the Ministry of Finance.                                                                                   of Trade & Industry prepare          from their intended constituency,
                                      under the second schedule of the                                                                             according to the new electoral law
                                                                                                              classifications [for] these raw      that was legislated last week.
Issued in mid-July 2019, the revised tariff, which is applicable for items
                                                                                                              materials,” reads a letter signed    The controversial bill, which was
                                                                                                                                                   legislated on August 24, 2019,
customs tariff has removed the privileged to be imported with zero                                            by Ahmed Shide, the minister of      also stipulates that those running

privileges of complete knocked- duty or reduced duty. However, the                                            Finance, “the items will be treated                              (Continued on PAGE 4)

down inputs (imported products new revision classified the items                                              with the second schedule for three

with parts that have been partly put under the first schedule, which                                          months.”

together and then complete their treats them with at basic tariff rates.                                      The revision on the customs tariff

assembly locally) and complete        With the previous system,             Ahmed Shide, the minister of      came into effect in line with the
knocked-down inputs (products         manufacturers were getting                                     Finance  harmonised system [internationally
that arrive unassembled and are       preferential treatment to import                                        standardized system of names
entirely assembled in the country).   inputs and raw materials for                                            and numbers to classify traded
                                      their respective final products.
In the past, these industrial raw                                                                                       (Continued on PAGE 4)

materials have been imported either The government has been giving

Calling on the Gurus                                                                                                                                                                                  Photo by: Sawrawork Tafari

An initiative that partners the government of Ethiopia with
        economic experts from Harvard University was unveiled on
        August 23, 2019, at the Addis Abeba Hyatt Regency Hotel.
        The event was attended by Yinager Dessie (PhD) (center),
Governor of the National Bank of Ethiopia, Michael Raynor (left),
the United States Ambassador to Ethiopia, Ricardo Hausmann
(right) (PhD), Director of the Growth Lab at the Center for
International Development at Harvard University, and Fitsum Assefa
(PhD), commissioner of the Planning & Development Commission.
The three-year initiative that is supported by USAID will see the
experts consult the government in the areas of monetary and fiscal
policy stability, structural and sectoral transformation, job creation
and poverty reduction.
Hausmann, who is a professor with a long record of advising
developing countries on creating effective growth strategies
and development policies, is leading the team of experts. He
met with representatives from the Ministry of Finance including
Brook Taye (PhD), senior advisor to the Ministry of Finance, to
discuss development plans, investment policy and private sector
participation strategy.
“The project is expected to contribute to the ongoing policy
dialogue and to craft plausible professional recommendations for
the economic reform programme, which was launched recently,”
said Yinager at the launching ceremony.
Ethiopia’s economic policies in recent years have resulted in
important infrastructure investments, but these gains were
made at the cost of incurring significant external debt and
without commensurate progress in job creation or private sector
investment, said Michael. The Ambassador added, “While this
process can only be led by Ethiopians, it can benefit from the
support of Ethiopia’s friends.”

Paid-up Capital (2017/18)    Dashen (2.2b Br)  BoA (2.5b Br)                NIB (2.1b Br)  United (2.95b Br)            Awash (2.9b Br)            LIB (1.18b Br)  BIB ( 1.47b Br)
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