Ethiopia’s Property Tax Reform Facing Delays, Report Says

Ethiopia’s property tax reform is facing significant implementation delays across the country, according to a recent report by the Institute for Fiscal Studies (IFS). Although the federal government enacted Property Tax Proclamation No. 1365/2017 in 2017, no regional states or city administrations have yet passed the necessary legislation to put the framework into effect.

The report highlights that the lack of standardized regional adoption and fragmented collection systems are the primary obstacles to the reform’s success. These delays have stalled the government's efforts to create a more efficient revenue stream from property taxation. Analysts warn that unless regional governments finalize their local legal frameworks, the national fiscal objectives associated with the new law will remain unmet. The study emphasizes the urgent need for better coordination between federal and regional authorities to streamline the tax collection process.