Fears high that the new tax hike could be a cause for re-surging protest
Barely weeks after government introduced new federal tax calculation which rather overburdened small business owners in a matter that is not bearable, protest reportedly broke out in Ambo town, south of the capital Addis Ababa.
ESAT cited sources from the town to report that about four police vehicles were destroyed during the protest in Ambo today.
From the report, there are also protests in other parts of the country in opposition to tax hikes for street vendors and small business owners.
Small business communities in Addis Ababa are also disenchanted and embittered by tax increases. Just to give you idea,based on social media reports, a single barber’s taxes are calculated on the assumption that he gets forty clients a day with a daily income of about 4,000 Ethiopian birr which is equivalent to $US 200. while the estimate is over-exaggerated, small business owners are expected to pay tax on the basis of it. The same is true for other small business owners.
In fact, there is unverified report that a small business owner committed suicide feeling hopeless about government move.
Ethiopia is still under state of emergency rule and there are speculations that government will extend it further in fear of looming protest across the country.
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