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.

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.