The Council of Ministers unanimously greenlit a landmark National Data Administration Proclamation during its 59th regular session held today in Addis Ababa, in a bold move to secure digital sovereignty and turbocharge artificial intelligence research. Aimed at accelerating nationwide digital transformation, the breakthrough legislation is crafted to modernize government services, establish a robust data-driven economy, and foster a booming digital innovation ecosystem across the country.

While the new data governance law took center stage, the Council also tackled a packed agenda and passed crucial resolutions spanning executive organization, public finance, taxation, and national defense.

Opening the session, ministers deliberated on a draft proclamation designed to determine the organization, powers, and duties of executive organs. Operating under the mandate of the constitution and election laws, which dictate that executive structures be renewed following every five-year national election, Article 56 requires the reorganization of executive powers, paving the way to re-establish federal executive bodies in the wake of the 2018 E.C. national elections. Following extensive debate, the Council voted unanimously to incorporate inputs and forward the draft proclamation to the House of Peoples' Representatives.

Fiscal and financial policy updates formed another core pillar of the meeting. Ministers deliberated over a loan agreement with the International Development Association worth 145.8 million Special Drawing Rights, earmarked for the first phase of the Power Sector Reform, Investment, and Modernization Project. After confirming that the financing package strictly aligns with national borrowing guidelines, the Council voted to push the ratification bill forward to the House of Peoples' Representatives.

Closer to home on the tax front, the Council approved targeted amendments to both the Federal Income Tax and Value Added Tax regulations. The income tax revision brings administrative clarity and aligns current rules with the amended Federal Income Tax Proclamation. Meanwhile, the VAT adjustment steps in to close the gap left by the repealed turnover tax, requiring taxpayers previously under that scheme to register for and collect VAT, while carving out tax exemptions for essential public goods and domestic industries strained by previous levies. Both regulations are set to take effect immediately upon publication in the Federal Negarit Gazette.

Wrapping up the day's session, the Council turned its attention to national defense, reviewing a draft amendment to the Defense Forces Proclamation. The update is tailored to equip the military with the legal backing necessary to execute its heavy constitutional mandates under Article 87 of the constitution. The Council gave the measure its unanimous backing, forwarding the bill straight to parliament for final approval.