The House of Peoples Representatives discussed on the draft proclamation intended to eliminate double taxation for businesses operating in Ethiopian and United Kingdom(UK) on Tuesday, November 20, 2012. The House then referred the draft proclamation to the Budget and Finance Affairs Standing Committee of the Parliament for further inquiry.
Ethiopia and the UK inked a bilateral agreement on June 9, 2011, eliminating double taxation for businesses operating in the two countries as the countries try to stimulate the growth of trade flow. The Double Taxation Agreement (DTA) announcement was first delivered by the then Deputy Prime Minister and Foreign Affairs Minister Hailemariam Desalegn in an address to investors present at the UK-Ethiopia investment forum held in London last year.
The trade relation between Ethiopia and UK reached 291 million dollars in 2011/12 fiscal year. During this period,Ethiopia's export to UK has grown on average by 10pc from 53 million dollars to 66 million dollars while Ethiopia's imports from UK grew by 22pc and reached 225 million dollars.