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Ethiopia Tax Policy Brief

This policy brief summarises the socioeconomic impact of VAT and import duty exemptions for standalone solar products in Ethiopia to support public-private sector dialogue. Drawing on growing international literature, local data, and building on ACE TAF’s Multi-Country Responsible Taxation report and quantitative tool, this brief summarises a qualitative and quantitative assessment of the impact of VAT and import duty regimes on the Ethiopian standalone solar (SAS) sector, and the results delivered across a range of fiscal, socio-economic, and environmental outcomes. Its purpose is to provide supporting evidence on the importance of achieving the Government of Ethiopia’s energy access targets and to support effective implementation of the National Electrification Program 2.0. This brief reinforces the importance of the existing VAT and import duty exemptions alongside other incentives needed to ensure access to clean, modern and sustainable energy for all Ethiopians

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