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Officials at
the Ministry of Revenue threatened last week to launch random
searches on the streets of the capital in a bid to seize what they
claim are vehicles transferred to third parties without duty paid to
the government.
The Ministry
suspected that close to 144 vehicles imported without paying duties,
but with forged documents, have been sold to third parties in
violation of the government’s goodwill directive issued in 2001.
The federal
government issued the directive five years ago exempting Ethiopians
who resided for over five years abroad, those working at
international organizations and members of diplomatic missions, from
paying duty on vehicles and personal affects brought back on their
return.
Eligible
returnees had to get a letter from the Ethiopian diplomatic mission
aboard and should their claims be authenticated at the Ministry of
Foreign Affairs in Addis, the duty free import was validated.
Importing cars
was by far the most popular practice: over 10,000 vehicles were
imported, particularly from the Middle East, putting the government
at a loss of one billion Birr, according to Tezera Wodajo, state
minister of Revenue.
“The numbers
of cars that were imported so far are far more than what this
economy can sustain,” he told a press conference last week hosted at
his office, on Beyene Abasebseb Street, adjacent to the Global
Hotel.
The Ministry
wants to put an end to what it calls a gross violation of its
generosity. It is determined to start its car hunt from the 144
vehicles it suspects were imported with forged documents and
followed by cars transferred to third parties being used for
commercial purposes.
State Minister
Tezera went to the extent of warning those renting vehicles for
weddings to be alert in order to avoid embarrassment when the police
is hunting for the illegal imports. Details have not been provided
when and for how long such a car-hunt will be staying.
“Our primary
task is to seize these vehicles and bring them to justice,” the
State Minister said.
The Ministry
announced last week that all duty free privileges were lifted,
including to diplomats and Ethiopians working for international
organizations. They are allowed to bring in vehicles paying duty,
while others have to import through licensed car importers.
There were
over 20 people gathered inside the Ministry of Revenue on Friday,
when the State Minister was giving his press conference, appealing
to its officials to be allowed to import their vehicles. The
Ministry announced that cars already on vessels when the exemption
was lifted would be spared from paying duty.
This does not
seem to make the Ministry popular with the Ethiopian diplomatic
community, according to reliable sources. Officials at the Ministry
of Foreign Affairs have a lot of misgivings and disagreements over
the decision by the Ministry of Revenue.
Indeed, even
after the directive was lifted on Wednesday, July 24, returnees
continued to be issued papers from the Ministry of Foreign Affairs.
Tigist Aschalew is one of these, complaining that the Ministry has
authenticated her documents on July 24, after charging 162 Br.
“It is not
fair to amend a directive to combat a criminal activity at the
expense of the innocents,” grumbled Ali Thabit, a returnee from
Canada, who is no longer allowed to bring the car he bought there
duty free. His documents were endorsed by the Ministry two days
after the directive was amended.
“It is sad
that the Ministry of Revenue, and the Customs Authority under it,
could not do their job in controlling those abusing the system and
instead have chosen to take away the rights of innocent citizens,”
said an angry diplomat at the Ministry of Foreign Affairs.
Ambassador
Solomon Abebe, director of the Press and Information and
Documentation Directorate with the Ministry of Foreign Affaires,
declined to comment when approached by Fortune.
“To comment on
this would be premature,” he said. |
