Council Approves Key Legal and Economic Measures

At its 59th regular meeting, the Council approved a draft law governing the powers and functions of federal executive institutions.

The draft was prepared following the 2018 Ethiopian general election to reorganize the federal executive in accordance with Article 56 of the Constitution, which provides for the establishment of executive organs following national elections held every five years.

The Council said it reviewed the draft and incorporated additional inputs before approving its submission to Parliament by unanimous vote.

The Council also approved a draft law to ratify a 145.8 million Special Drawing Rights loan agreement with the International Development Association to finance the first phase of an energy-sector reform, investment and modernization project.

The Council said it reviewed the loan agreement and determined that it was consistent with Ethiopia’s borrowing policy.

In addition, it approved amendments to the federal value-added tax regulations, including provisions affecting the VAT treatment and registration requirements of taxpayers previously subject to turnover tax.

The amendments are intended to enable taxpayers who previously collected turnover tax while providing professional services and other supplies to register for VAT and collect the tax.

The revised regulations also remove VAT from certain supplies where the tax burden was found to affect the cost of basic goods and services and the competitiveness of domestic industries.

The Council approved the amended regulations by unanimous vote, with the changes to take effect upon publication in the Federal Negarit Gazette.

Source - The Reporter Ethiopia
Date - September 28, 2026