Confederation of Ethiopian Trade Unions has called on the federal government to revise the income tax threshold, urging an exemption for employees earning monthly salaries of up to 8,384 Br.
Kassahun Folo, President of the Industrial and Service Employees’ Metal and Construction Confederation (ISEMAC), told Reporter that the proposal aims to shield low-income earners from the burden of taxation amid rising living costs. He argued that income taxation should begin at a level aligned with poverty benchmarks set by international institutions.
“According to World Bank standards, individuals earning less than three US dollars a day fall below the poverty line,” said Kassahun. “It is only reasonable that the government adjusts its tax regime to reflect this reality.”
The Confederation has proposed a revised progressive tax structure under which employees earning between 8,384 Br and 22,974 Br would be subject to a 10pc tax rate. Meanwhile, those whose monthly income exceeds 150,108 Br would be taxed at the top marginal rate of 35pc.
The proposal is part of broader efforts by labour unions to advocate for equitable taxation and improved living standards for Ethiopia’s workforce.