Cost Recovery by Public Institutions Becomes a Hidden Tax
Ideally, citizens who have paid income tax all year should not have to reach for their wallet again at a public office counter. Yet, in Ethiopia, that appears to have become a routine.
To obtain a birth certificate, register land, renew a business permit or collect a court document, the taxpayer pays a second time, now as a user of the very services income taxes were meant to fund. The state, pressed for money to fill a budget deficit and unable to borrow from the Central Bank, is turning to fees, levies and charges to finance its operations at a time when households and firms are contendin...