Reconsidering Ethiopia’s Tax Incentive Policy on Hospitality Sector
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Date
2020
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Addis Ababa, Ethiopia
Abstract
Hospitality sector as smokeless industry is becoming prior investment choice throughout the
world. In order to attract potential investment in this sector, tax incentive has been widely in use
by governments of different state to which Ethiopia is no exception. However it is subjected to
wide abuse by beneficiaries and corrupted by involved granting authorities. Hence the main
purpose of the thesis is to scrutinize whether Ethiopia’s tax incentive Policy in hospitality sector
is designed and implemented properly. It scrutinize applicable laws on tax incentive and assess
the roles of enforcement authorities. After discussing design of the existing tax incentive laws
vis-a-vis practical implementation, the writer argued that Ethiopia should reconsider the existing
tax incentive Policy in hospitality sector. Finally, in order to control tax incentive abuse in this
sector, the writer forwarded areas for recommendation including enactment of specific
guidelines to regulate bill of quantity and establishment of designated institution.
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Keywords
Hospitality Sector, Investment, Tax Incentive Abuse