The Ethiopian government is implementing a series of tax reforms targeting alcohol, tobacco, and fuel to boost its revenue and stabilize its finances. The government will raise specific excise tax rates on alcohol and tobacco products, with new rates raised “in line with accumulated inflation”. Additionally, as of July 2025, Customs began collecting all federal fuel taxes, including VAT, excise tax, and social welfare duties, at full statutory rates. The IMF estimates that these reinstated fuel taxes will generate revenue equivalent to 0.8 percent of GDP. Furthermore, the administration aims to “substantively eliminate” fuel subsidies by the end of February 2026.

Source: Ethiopian News February 10, 2026 22:09 UTC