May 15, 2026 (Gebeya Media) — A newly drafted amendment to Ethiopia’s Tax Administration Proclamation prepared by the government states that any taxpayer who fails to issue a receipt despite being legally required to do so may face a heavy administrative penalty of 100,000 birr for each receipt not issued.
According to information obtained from the Ministry of Finance, the legal amendment introduces stricter criminal and administrative penalties, particularly targeting illegal activities related to the misuse of tax receipts and the accountability of company management.
Under the proposed amendment, penalties for failing to issue receipts have been significantly increased.
Accordingly, any taxpayer who is obligated to issue a receipt but fails to provide one to a customer will be fined 100,000 birr for each missing receipt.
However, the law specifies that failure to issue receipts will escalate into criminal prosecution only if the offender commits the same violation for a third time within a single tax year after already receiving administrative penalties twice.
In addition, the penalties for fraud involving the manipulation of sales values through the use of duplicate receipts have also been strengthened.
Any person who records different prices on duplicate receipts issued for the same transaction, thereby understating the sales value, or who issues receipts with reduced sales values, will face a monetary fine of 100,000 birr. Furthermore, the new law stipulates imprisonment ranging from five to seven years.
The draft proclamation also places additional responsibility on officials and employees in organizations and government institutions who oversee tax withholding and revenue reporting processes.
Managers, senior officials, chief accountants, or any government or company employee responsible for ensuring that taxes are properly withheld and paid before a request is made by the tax authority, but who fail to fulfill these duties, will each be subject to an additional fine of 2,000 birr on top of the penalty imposed on the institution itself.
Finally, regarding tax crimes committed by organizations, the draft law states that company managers, finance officers, or other executives in similar positions who authorized, ordered, or cooperated in the commission of the offense at the time it occurred will be considered criminally liable as perpetrators of the offense.
However, the draft proclamation also notes that such officials may be exempted from criminal liability if they can prove that the crime was committed without their knowledge or that they had established reliable internal control systems designed to prevent such offenses.
The Ministry of Finance announced that it has organized an open discussion forum with stakeholders regarding the draft amendment prepared to revise the existing Tax Administration Proclamation No. 983/2016 and has extended invitations to participate.
Before the draft law is approved and implemented, the Ministry emphasized the importance of involving directly affected groups, collecting feedback, and conducting transparent discussions. Accordingly, taxpayers, members of the business community, legal and economic experts, and all interested members of the public are invited to attend and provide their opinions in person on May 19, 2026, starting at 9:00 AM, at the Ministry of Finance headquarters compound located in Sidist Kilo.
