Reconsidering Ethiopias Tax Incentive Policy On Hospitality Sector

Hospitality sector as smokeless industry is becoming prior investment choice throughout thernworld. In order to attract potential investment in this sector, tax incentive has been widely in usernby governments of different state to which Ethiopia is no exception. However it is subjected tornwide abuse by beneficiaries and corrupted by involved granting authorities. Hence the mainrnpurpose of the thesis is to scrutinize whether Ethiopia’s tax incentive Policy in hospitality sectorrnis designed and implemented properly. It scrutinize applicable laws on tax incentive and assessrnthe roles of enforcement authorities. After discussing design of the existing tax incentive lawsrnvis-a-vis practical implementation, the writer argued that Ethiopia should reconsider the existingrntax incentive Policy in hospitality sector. Finally, in order to control tax incentive abuse in thisrnsector, the writer forwarded areas for recommendation including enactment of specificrnguidelines to regulate bill of quantity and establishment of designated institution.

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