Whereas, the existing land rental and building tax system has not enabled urban areas in Ethiopia to meaningfully generate their own revenues to meet the expanding service and facility needs of their fast-growing resident population;

Whereas, it is believed that Property Tax will enhance fair wealth distribution among city dwellers as well as collection of more tax revenue from the increase in property value, which can be used for investment expenditures to be made for delivery, maintenance and sustainability of government services and facilities with better quality and with a wider scope;

Whereas, it has become necessary to put in place a property tax system applicable throughout the country which ensures transparency, strengthens market system, brings efficiency and effectiveness in the valuation of landed property as well as the levy and collection of property tax to help achieve the objectives of living as one economic community;

Now, therefore, in accordance with the power granted by the Second term and First joint decisions of the House of Federations and House of People’s Representatives which held on 11th January 2023 on the basis of Article 99 of the Constitution and on the basis of Article 55 Sub-Article (1) of the Constitution, it is hereby proclaimed as follows.