The starting salary of the workers is asked to be 8,384 birr.

It has been asked that the salary of government employees who will be levied on high taxes should start from 150,000 birr. The starting salary of the workers is asked to be 8,384 birr.
 * The government has presented a draft proclamation that starts from 1,200 to 2,000 birr

Ethiopian Workers' Unions Confederation (EAMACO) announced that they have submitted a request to the government to make their monthly salary up to 8,384 birr tax free. The president of IMACO Mr. Kasahun Folo told the reporter, he has asked the government to exempt tax for the employees whose monthly salary is up to 8,384 birr. The Ministry of Finance is discussing with stakeholders to amend the Income Tax Proclamation 979/2008 which is said to be in office for the past nine years.

It is feared that the employees who are paid up to two thousand birr will be tax free by this amendment. EMACO has announced that it has requested a letter to the Ministry of Finance to be tax exempted for employees who are paid up to 8,384 birr. Mr. Kasahun said according to the information of the World Bank that a person whose daily income is less than three dollars is poor, the government income tax should be considerate to the employees who are under this level. 

EMACO has stated that it has asked the government to impose ten percent tax on employees who work in any employing institutions who earn 8,384 birr to 22,974 birr monthly. EMACO has warned in the letter that those paying monthly salary of 22,975 to 44,530 birr 15 percent, 44,531 to 72,336 birr 20 percent, and 72,337 to 107,449 birr 25 percent tax. EMACO has stated that in his letter to the government that employees who are paid from 107,450 to 150,107 birr will pay 30 percent tax, and employees who are paid 150,108 birr and above should pay 35 percent tax. According to the current workers income tax declaration, the workers who are paid up to 600 birr are free from tax, they will be forced to pay 35 percent tax starting from 10,900 birr. It is noted that the income tax amendment bill announced by the Ministry of Finance a week ago for discussion, there is a stepping stone to make 1,200 birr, 1,600 birr and 2,000 birr monthly salaries tax exempt. It will not be forgotten that the discussion participants commented that the government income tax amendment did not take into account the current economic situation of the employees.


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