Ethiopian News, Current Affairs and Opinion Forum
Mesob
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The war in the Gulf and the Middle East may weaken Abiy Ahmed

Post by Mesob » 13 Jun 2025, 01:43

If the war in the Middle East which is dubbed as the beginning of the end of the region intensifies. The Gulf Arabs such as Unite Arab Emirates UAE, Qatar, Bahrain, Kuwait and Saudi Arabia may be engulfed in and with their oil resources, plus the Strait of Hormuz may be blocked with all the oil tankers stopped, that may also weaken UAE and its benefactors, such as Ethiopia's Abiy Ahmed and the Sudanese RSF rebels.

Horus
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Joined: 19 Oct 2013, 19:34

Re: The war in the Gulf and the Middle East may weaken Abiy Ahmed

Post by Horus » 13 Jun 2025, 01:59

Mesob wrote:
13 Jun 2025, 01:43
If the war in the Middle East which is dubbed as the beginning of the end of the region intensifies. The Gulf Arabs such as Unite Arab Emirates UAE, Qatar, Bahrain, Kuwait and Saudi Arabia may be engulfed in and with their oil resources, plus the Strait of Hormuz may be blocked with all the oil tankers stopped, that may also weaken UAE and its benefactors, such as Ethiopia's Abiy Ahmed and the Sudanese RSF rebels.
On the contrary. Status quo is the enemy of Ethiopia. Ethiopia is much closer to Israel that people would like to accept. Crisis is exactly what Ethiopia needs to break out the prison imposed upon it by the status quo. Ethiopia is a disrupting force at the moment and crisis is her opportunity. This crisis will keep our primary enemy Egypt busy and its water carrier Isaysa as well. Even, Turkey will be preoccupied with this crisis all of which is will open space for Abiy and Abdirahman.

Mesob
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Posts: 2448
Joined: 23 Dec 2013, 21:03

Re: The war in the Gulf and the Middle East may weaken Abiy Ahmed

Post by Mesob » 13 Jun 2025, 02:18

You made a good point because the other side of the Middle East is Israel, and as well as the USA.
Horus wrote:
13 Jun 2025, 01:59
Mesob wrote:
13 Jun 2025, 01:43
If the war in the Middle East which is dubbed as the beginning of the end of the region intensifies. The Gulf Arabs such as Unite Arab Emirates UAE, Qatar, Bahrain, Kuwait and Saudi Arabia may be engulfed in and with their oil resources, plus the Strait of Hormuz may be blocked with all the oil tankers stopped, that may also weaken UAE and its benefactors, such as Ethiopia's Abiy Ahmed and the Sudanese RSF rebels.
On the contrary. Status quo is the enemy of Ethiopia. Ethiopia is much closer to Israel that people would like to accept. Crisis is exactly what Ethiopia needs to break out the prison imposed upon it by the status quo. Ethiopia is a disrupting force at the moment and crisis is her opportunity. This crisis will keep our primary enemy Egypt busy and its water carrier Isaysa as well. Even, Turkey will be preoccupied with this crisis all of which is will open space for Abiy and Abdirahman.

Zmeselo
Senior Member+
Posts: 35743
Joined: 30 Jul 2010, 20:43

Re: The war in the Gulf and the Middle East may weaken Abiy Ahmed

Post by Zmeselo » 13 Jun 2025, 05:42

Imagine, if the war intensifies! :lol:


Business | Market
Ethiopia Plans to Unveil 15% New Fuel and Vehicle Taxes to Bolster Public Revenue

Addis Insight

https://www.addisinsight.net/2025/06/11 ... c-revenue/

June 11, 2025



The Ethiopian government is preparing to roll out a new set of fuel and vehicle taxes as part of a broader fiscal reform aimed at boosting domestic revenue and easing pressure on state finances. The plan includes a 15% value-added tax (VAT) on fuel, a 15% excise duty, and a newly proposed vehicle circulation tax for fuel-powered cars.

While no formal launch date has been announced, the Ministry of Finance recently briefed members of parliament on the proposal. Officials say the move is essential to modernize Ethiopia’s tax system and reduce the country’s reliance on unsustainable fuel subsidies.

Toward a Post-Subsidy Economy

Since mid-2022, the government has been gradually scaling back its fuel subsidy program, citing mounting fiscal pressures and a desire to correct market distortions. The partial removal of subsidies has already caused diesel and petrol prices to rise by over 50%.

However, amid high inflation—currently at 13% annually—the government has retained some fuel subsidies, framing the new tax measures not as a substitute but as a complementary step in a long-term fiscal restructuring.

Finance Minister Ahmed Shide emphasized this during a recent parliamentary session, saying,
The goal is not to generate profit from the fuel tax. It’s to create a mechanism to continue subsidizing fuel in a more sustainable way, while reducing the burden on public finances.
Political Pushback

The proposed taxes have drawn swift backlash from opposition lawmakers and civil society groups. Many see the plan as contradictory and burdensome to ordinary citizens already grappling with the rising cost of living.
Why is the government claiming to protect consumers through subsidies while imposing new taxes that cancel out the benefit?
asked Desalegn Chane (PhD), an opposition MP, during the session.
This is mixed messaging that hurts the public.
The vehicle circulation tax—expected to apply only to fuel-powered cars—has raised further questions about fairness and feasibility, especially in a country with limited access to electric or alternative-fuel vehicles.

Revenue Imperative

Despite the controversy, economic analysts argue that the government has little choice. Ethiopia’s tax-to-GDP ratio stands below 10%, one of the lowest in Sub-Saharan Africa, leaving the state heavily dependent on foreign aid, loans, and inflationary financing.
With shrinking aid flows, constrained borrowing, and inflation risks from monetary expansion, increasing domestic tax revenue is the only option left,
said a former advisor to the National Bank of Ethiopia.

Officials at the Ministry of Finance say the tax reform is part of a broader consolidation strategy, intended to improve fiscal stability and allow for targeted investments in public services and infrastructure.

While many details remain unclear—including when the taxes will be enacted and how the vehicle circulation levy will be enforced—the government insists the reforms are part of a larger effort to create a fairer, more resilient tax system.

Communicating that message to the public, however, may prove just as challenging as the policy itself.

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