Ministry, Private Banks Sign Electronic Tax Agreement

Jun 12 , 2021

The Ministry of Revenues signed an agreement to establish an electronic tax payment system with four private commercial banks – Awash, Dashen, Hibret and Berhan – on June 9, 2021. The Ministry started the initiative two years ago and has so far inked deals with five banks and the Information Network Security Agency. The electronic system is expected to help do away with the inconveniences associated with filing and paying taxes as well as improve collection. According to data from the Ministry of Finance, the contribution of Ethiopia’s tax revenue to its GDP was just 9.8pc in the 2018/2019 fiscal year. The venture is also hoped to play its part in avoiding delays and the subsequent penalties associated with late tax payments. The state-owned Commercial Bank of Ethiopia was the first to sign up for the electronic system two years ago.