Dividends, Insurance Premiums, Bank Credit On Long List Of Disaster Response Fund Income Streams

• 25pct of federal budget earmarked for Fund

A new decree from the Council of Ministers that will see levies on everything from bank loans and insurance premiums to digital transactions and government budgets funneled into the newly established Disaster Risk Response Fund will go into effect next month.

The regulation establishes the Ethiopian Disaster Risk Response Fund Office, and identifies no less than 17 distinct sources of income for the Fund, which officials envision playing a crucial role in weaning Ethiopia off dependence on foreign aid in humanitarian operations.

The office, whose board is accountable to the Ethiopian Disaster Risk Management Commission, is charged with collecting and administering the income, and “making the necessary effort to increase the income of the fund.”

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The fund office can own property, enter into contracts, and sue and be sued in its name, according to the regulation.

It requires banks and other financial institutions to provide one percent of all loans to the Fund, while insurance firms are obliged to surrender one percent of all premiums to the Fund each month.

Digital banking service providers and financial technology firms are required to pay five percent of income from transaction fees as a levy, while shareholders will be required to pay one percent of annual dividends.

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Ethio telecom and Safaricom will be compelled to surrender five percent of voice and data airtime charges, according to the regulation.

It introduces a flat levy of 100 Birr on all domestic flight ticket purchases, while passport and visa processes now carry a 200 Birr levy.

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The Ethiopian Petroleum Supply Enterprise will be responsible for collecting one Birr per liter of fuel sold to distributors on behalf of the Fund, while government offices will introduce a 200 Birr levy for all license applications, including renewals, according to the regulation.

Five percent of the fees charged by the Documents Authentication and Registration Service will also be put aside for the Fund.

The regulation states that 60 percent of the proceeds from the sales of contraband goods seized by the Customs Commission will be funneled into the Fund.

Chemical importers and producers will be required to contribute, while tobacco and alcoholic product sales, lottery ticket sales, and maritime transport and logistics service fees will also be levied.

The regulation states that 0.25 percent of the annual federal budget, as well as the budgets of the Addis Ababa and Dire Dawa city administrations, will go to the Fund.