Ethiopia has significantly broadened its Value Added Tax (VAT) system, mandating more businesses and professionals to register under new regulations. This move, outlined in Directive No. 1104/2025, aims to boost compliance and expand the nation's tax base.

• All Category “A” taxpayers and businesses with annual taxable and exempt transactions exceeding 2 million birr are now required to register for VAT.
• The Ministry of Finance, led by Finance Minister Ahmed Shide, is the key organization behind these changes.
• The new directive also extends VAT obligations to professional service providers regardless of turnover, effective after publication on the Ministry of Finance’s website and registration with the Ministry of Justice.

US President Donald Trump's 50% tariffs on India, effective August 27, have put Delhi in a difficult position. India has responded with geopolitical signaling rather than direct retaliation, as the tariffs threaten significant economic repercussions.

• Prolonged 50% tariffs could reduce India's GDP by as much as 0.8%.
• India's exports to the US could drop by up to $35 billion (£26.1 billion) this financial year, risking hundreds of thousands of jobs in key industries.
• Experts advise against retaliation, citing India's greater economic dependence on the US, with India's goods exports to the US ($86 billion) being nearly three times higher than US goods exports to India.
• India is exploring options like diversifying export markets and strengthening trade ties with countries like Mexico, Canada, and those in Europe and Latin America, while accelerating other trade pacts like the India-EU free trade deal.
• US Commerce Secretary Howard Lutnick has warned of potential changes to H1B non-immigrant visas, 70% of which are used by Indians, indicating the impact of tense geopolitical ties extends beyond trade.

India significantly cut taxes on hundreds of goods, simplifying its Goods and Services Tax (GST) structure into two main slabs of 5% and 18%, effective September 22. This move aims to boost domestic consumption and mitigate the potential economic impact of steep US tariffs.

• The tax cuts are expected to lead to revenue losses of up to $6 billion for the Indian government.
• Finance Minister Nirmala Sitharaman announced the changes, which will make items like school supplies and ACs cheaper, while imported liquor and premium cars will become costlier.
• The new rates coincide with India's festive season, when sales of electronic goods are expected to surge, and follow a $12 billion income tax giveaway earlier this year.