Enat Party Wins Property Tax Lawsuit Against City Admin

The administrative bench at the Federal High Court has ruled in favor of Enat Party in its lawsuit against the Addis Ababa City Administration Finance Bureau and an illegal property tax directive.

The Court made the ruling following a session on January 17, 2025, ordering that the property tax directive should not be implemented as it lacks a legal basis, according to a statement posted to the Enat Party Facebook page.

Reports indicate that the City Administration appealed to the court on the same day, requesting it to order the Party not to disclose the verdict to the media or the public.

Lelise Desalegn, Court president, granted the injunction.

“The respondent argued that if the decision were to be disclosed, it would cause irreversible damage to the City Administration. Therefore, considering the damage, the Court has ordered that the decision shall not be disclosed to the media until the respondent makes its appeal within the next 15 days,” reads the decision.

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However, the City Administration’s Justice Bureau posted the court statement directly on its social media pages. Enat Party also posted a summarized version of the verdict.

The legal battle began after the City Administration introduced a document and directive that enabled the Finance Bureau to begin collecting property tax from residents, starting since nearly two years ago.

Enat Party filed the suit, arguing the Administration does not have the power to introduce such a directive. Fundamentally, directives derive from regulations, which themselves derive from proclamations.

The opposition party argued that a proclamation that enables the collection of property tax did not exist when the City Administration began implementing its directive.

Parliament ratified the country’s first-ever property tax proclamation just this week, long after the City Administration introduced its directive.