Manila:The Council of Ministers has approved several legislative and regulatory initiatives designed to reshape federal institutions, strengthen data governance, modernize the power sector, enhance tax administration, and reinforce the legal framework for the national defense forces.
According to Ethiopian News Agency, the Council deliberated on a draft proclamation that defines the powers and responsibilities of executive organs, formulated under Article 56 of the FDRE Constitution following the 2026 national elections. This legislation establishes the institutional structure for federal executive entities to effectively execute their mandates for the upcoming term. After incorporating key inputs, the Council unanimously referred the draft to the House of Peoples' Representatives.
The session also evaluated the National Data Governance Draft Proclamation, aimed at securing data sovereignty, enhancing government service delivery through system interoperability, expanding artificial intelligence research, and driving data-led economic growth. The Council unanimously referred this enhanced bill to the parliamentary body.
In development financing, the Council approved a draft proclamation ratifying a 145.8 million SDR loan agreement with the International Development Association. These funds are allocated for Phase One of the Power Sector Reform, Investment, and Modernization Project. The Council confirmed the agreement's alignment with national debt policy before referring it to the House of People's Representatives for final enactment.
The Council also passed amendments to the Federal Income Tax Regulation and the Federal Value Added Tax Regulation. The income tax revision aligns procedures with Federal Income Tax Proclamation No. 979/2016 to improve transparency. Additionally, the value added tax adjustments address tax structures for former turnover tax collectors while exempting essential consumer items to protect household purchasing power and local industrial competitiveness. The Council decided to implement these regulations immediately following their publication in the Negarit Newspaper.
Finally, the Council reviewed proposed amendments to Defense Forces Proclamation No. 1286/2023. These amendments aim to strengthen the legal framework that enables the national armed forces to fulfill their constitutional mandates as outlined under Article 87. The Council unanimously resolved to send this draft bill to the House of Peoples' Representatives.
