NBE Plans Tax Reform to Boost Interest-Free Finance

The National Bank of Ethiopia (NBE) has unveiled a new strategy aiming to reform the national tax framework to support interest-free finance. The proposed changes are designed to eliminate financial distortions and overlapping tax liabilities that currently hinder the growth of the sector. This initiative is a critical component of the newly released Draft National Interest-Free Finance Strategy. It marks the central bank's first comprehensive policy framework dedicated to addressing the challenges faced by interest-free financial institutions. The move seeks to create a more equitable environment for these services within the Ethiopian economy.