Ethiopia’s Council of Ministers has approved a package of decisions covering tax reform, digital governance, energy financing and the federal executive structure, according to the decisions from its 59th regular meeting.

The most immediate economic measures involve Federal Income Tax and VAT regulations. The Council approved amendments to improve tax administration and transparency, while changes to the VAT regulation are intended to facilitate VAT registration following the abolition of Turnover Tax and provide exemptions for selected supplies.

The Council also approved and forwarded to Parliament draft proclamations to reorganize federal executive organs following the 2018 E.C. national elections and establish a framework for national data governance, including data security, sovereignty, data sharing, interoperability and AI research.

On energy, the Council approved the ratification of a SDR 145.8 million IDA loan for Phase I of the Energy Sector Reform, Investment and Modernization Project.

A separate decision approved amendments to the National Defence Force Proclamation, with the changes taking effect upon publication in the Federal Negarit Gazette.

The tax changes and the proposed reorganization of federal executive bodies are among the decisions with the most direct implications for businesses and government administration.