AMN PLUS — September 28, 2019
Ethiopia’s Council of Ministers has unanimously approved a draft National Data Administration Proclamation, placing data governance, digital sovereignty and artificial intelligence research at the heart of its 59th regular session held in Addis Ababa.
The proposed legislation is designed to support Ethiopia’s digital transformation by strengthening data security and sovereignty, promoting data sharing and interoperability, modernizing government services, and advancing artificial intelligence research and innovation.
It also seeks to accelerate the growth of the digital economy and establish a development system increasingly driven by data.
Beyond data administration, the Council addressed a broad agenda covering executive restructuring, development financing, taxation and national defense.
At the opening of the session, ministers considered a draft proclamation governing the organization, powers and duties of executive organs.
The draft follows the 2018 E.C. national elections and the constitutional requirement to reorganize federal executive structures following national elections. After extensive deliberations, the Council unanimously decided to incorporate additional inputs and submit the draft to the House of Peoples’ Representatives.
On development financing, the Council reviewed a 145.8 million Special Drawing Rights (SDR) loan agreement with the International Development Association. The financing is intended to support the first phase of the Power Sector Reform, Investment and Modernization Project
After confirming the agreement’s compatibility with Ethiopia’s borrowing policy, the Council unanimously agreed to forward the ratification bill to parliament.
The Council also approved amendments to the Federal Income Tax Regulation and the Federal Value Added Tax Regulation.
The income tax amendment is intended to improve transparency and administrative efficiency and align the regulation with the amended Federal Income Tax Proclamation.
The VAT amendment addresses the transition following the repeal of turnover tax. Taxpayers previously collecting turnover tax on professional services and other supplies will be required to register for VAT and collect the tax. The amendment also provides exemptions for certain supplies where existing VAT charges were considered to place pressure on essential goods and the competitiveness of domestic industries.
Both amended regulations will take effect from the date they are published in the Federal Negarit Gazette.
The Council concluded its session by considering a draft amendment to the Defense Forces Proclamation. The proposed changes are intended to update Proclamation No. 1286/2015 and provide the legal framework necessary for the defense forces to carry out their national missions in accordance with Article 87 of the Constitution.
The Council unanimously approved forwarding the draft amendment to the House of Peoples’ Representatives for further consideration.
Source: Office of the Prime Minister of Ethiopia
