WHEREAS, it is believed that reforms to the income tax system can support revenuemobilization reform and economic development; WHEREAS, to achieve said objectives it has become necessary to revise certain provisions of the existing income tax proclamation in order to ensure fairness in the tax system by updating and adjusting tax rates to reflect current economic realities, broadening the tax base, enhancing the efficient administration of tax incentives, and safeguarding against aggressive tax avoidance and evasion;
WHEREAS, it has become necessary to limit the use of cash transactions that have facilitated tax evasion and to amend certain provisions of income tax proclamation number 979/ 2016 so as to combat other tax avoidance practices and to align the tax system with the fundamental principles of taxation; NOW, THEREFORE, in accordance with Article 55(1) and (11) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows:
