Ethiopia: Fees to be Charged on Cash Transactions Over 10K Birr
Additional fees will be charged on cash transactions exceeding 10,000 birr. Both the payer and recipient will have to pay the fees.
Ethiopian government wants to discourage cash transactions. The recently approved new income tax proclamation stipulates that additional fees should be charged on cash transactions exceeding 10,000 birr. It remains to be seen how the procedure will be implemented.
According to Tadabbi Mohammed, Head of the Legal Affairs Department of the Ministry of Finance, the proclamation is being implemented with the aim of limiting cash transactions.
According to a draft proclamation prepared by the Ministry of Finance, the obligation to prevent cash transactions exceeding 10,000 birr will not apply to government agencies, government development organizations, banks, and microfinance institutions.
The draft states that the list of other individuals and organizations to which the proclamation will not apply will be published in a directive issued by the Ministry of Finance.
