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Ethiopia Electric-Tariffs Factor Costs 2014

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Ethiopia Electric-Tariffs Factor Costs 2014 Factor Costs ETHIOPIAN INVESTMENT COMMISSION Factor Costs June2014 Factor Costs Part 1: COST OF LAND .............................................................................................. 1 1.1 Urban Land ................................................................................. .......................1 1.1.1 Lease Holding ............................................................................................. 1 1.1.2 Minimum Lease and Rental Prices of Urban Land in Selected Regions .... 3 1.2 Rural Land in Selected Regions ....................................................................15 1.2.1 Tigray National Regional State ................................................................... 15 1.2.2 Oromiya National Regional State ................................................................. 16 1.2.3 Amhara National Regional State .................................................................... 16 1.2.4 Southern Nations, Nationalities and Peoples Regional State (SNNPRS) ... 20 1.2.5 Benshagul Gumz National Regional State .................................................... 21 1.3 Incentives Related to Land ..................................... Error! Bookmark not defined. 1.3.1 Oromiya National Regional State ........................ Error! Bookmark not defined. 1.3.2 Amhara National Regional State .......................... Error! Bookmark not defined. 1.3.3 Tigray National Regional State ............................ Error! Bookmark not defined. 1.3.4 Gambella National Regional State 4 ..................... Error! Bookmark not defined. 1.3.5 Benshangul Gumuz National Regional State ..... Error! Bookmark not defined. 1.4 Industry Zone Development in thiopia..............................................................2 6 Part 2: LABOR COST ............................................................................................... 29 2.1 Wages and Salaries at Enterprise Level ................ Error! Bookmark not defined. Part 3: COST OF CONSTRUCTION AND SELLING PRICE OF BUILDINGS.............30 3.1 Cost of Construction Materials ......................................................................... 30 3.2 Selling Prices of Buildings .................................... .. Error! Bookmark not defined. Part 4: TARIFFS.............................................................. Error! Bookmark not defined. 4.1 Electricity Tariffs ................................................. ..... Error! Bookmark not defined. 4.1.1 Street Light Tariff ............................................................................................ 41 4.1.2 Service Charge..............................................................................................42 4.1.3 Minimum Charge..................................................................................................43 4.1.4 Power Factor Charge...................................................................................44 4.2 Water Tariffs ............................................................. Error! Bookmark not defined. 4.3 Telecom ServiceTariffs ...................................................................................... 45 4.3.1 Voice service tarif f..................................................................................46 4.3.2 Internet Service ..................................................... Error! Bookmark not defined. 4.3.3 Data (VPN) service .......................................................................................... 58 Part 5: TAXES ................................................................. Error! Bookmark not defined. 5.1 Customs Duty .......................................................... Error! Bookmark not defined. 5.2 Value Added Tax (VAT) .......................................... Error! Bookmark not defined. 5.3 Turnover Tax ............................................................ Error! Bookmark not defined. 5.4 Excise Tax ................................................................ Error! Bookmark not defined. 5.5 Business Income Tax .............................................. Error! Bookmark not defined. 5.5.1 Income Tax on Individual Entities /Unincorporated Business...................65 5.5.2 Corporate Income Tax .................................................................................... 66 5.6 Rental Income Tax ................................................... Error! Bookmark not defined. 5.6.1 Corporate Rental Income Tax………………........……………………………66 5.6.2 Rental Income Tax on Individual Entities /Unincorporated Business/ ....... 66 5.7 Personal Income Tax ............................................... Error! Bookmark not defined. I Factor Costs 5.8 Export Tax .................................................................... Error! Bookmark not defined. 5.9 Mining Income Tax ....................................................... Error! Bookmark not defined. 5.10 Other Income Taxes ................................................... Error! Bookmark not defined. 5.11 Withholding Tax .......................................................... Error! Bookmark not defined. 5.12 Stamp Duty ................................................................ Error! Bookmark not defined. Part 6: TRANSPORT COSTS ............................................ Error! Bookmark not defined. 6.1 Road transport tariffs .................................................. Error! Bookmark not defined. 6.1.1 cargo transport changes ............................................ Error! Bookmark not defined. 6.2 Sea transport tariffs .................................................................................................... 69 6.3 Air Transport Tariffs....................................................................................................71 Part 7: COSTS OF ADVERTISING .................................... Error! Bookmark not defined. 7.1 Advertising on Television ............................................. Error! Bookmark not defined. 7.1.1 ETV1 Commercials price ........................................... Error! Bookmark not defined. 7.1.2 ETV2 Commercials Price .......................................... Error! Bookmark not defined. 7.1.3 ETV3 Commercials Price ........................................................................................ 77 7.2 Advertising on Radio .................................................................................................. 78 7.2.1 National Service ...................................................................................................... 78 7.2.2 FM Addis 97.1 ......................................................................................................... 79 7.3 Advertising on Newspapers ...................................................................................... ..80 Part 8:COST OF POSTAL SERVICES ............................................................................. 82 8.1 Domestic postal service charges ..................................................................... 82 8.2 International postal service charges ...................... Error! Bookmark not defined. 8.3 Charges for other Postal services .......................... Error! Bookmark not defined. Part 9: INSPECTION AND MARKING FEES OF ETHIOPIAN STANDARDS ............ Error! Bookmark not defined. Part 10: CHARGES FOR INVESTMENT SERVICES ........ Error! Bookmark not defined. II Factor Costs PREFACE This booklet on costs pertaining to different factors in the year 2014 is published by the Ethiopian Investment Agency (EIA) aimed to assist potential investors in preparation of investment projects. In view of this, the Agency hopes that investors will benefit from this publication in their efforts to undertake successful businesses in Ethiopia. As the Agency continues to publish revised versions of the same annually, possible comments or suggestions are most welcome. Consequently, EIA would like to let users of this publication know that it is also available on the Agency’s website, www.eia.gov.et Ethiopian Investment Agency Addis Ababa 1 Factor Costs Part 1: COST OF LAND Under the Constitution of the Federal Democratic Republic of Ethiopia, land is the sole property of the State and the peoples of Ethiopia. Urban and rural land is available for investment on lease-hold and rental basis, respectively . 1.1 Urban Land 1.1.1 Lease Holding In conformity with a master plan or guidelines of a city, urban land is permitted to be held on lease by auction. Minimum price of urban land will be determined by auction. Lease- hold title deed will be conferred on a person to whom urban land is permitted. A) Duration lease holding According to the Urban Lands Lease Holding Proclamation No. 721/2011, the duration of lease for urban land varies depending on the level of urban development and a sector or the type of development activity or the type of service on which land is held by leases as shown in the following table. Table 1- 1 Maximum lease holding period by activity Location Area of activity Period of Lease Any Urban center Residential housing, science and technology, 99 year research and study, government offices, charitable organizations ,and religious institutions Urban agriculture 15 year Diplomatic missions and international organizations As per an agreement Addis Ababa Education, Health, Culture and Sport 90 year Industry 70 year Commerce 60 year others 60 year Other urban centers Education, Health, Culture and Sports 99 year Industry 80 year Commerce 70 year Others 70year B) Renewal of lease
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