Parliament Raises Concern over Stagnant Tax-GDP Ratio

Jul 1 , 2023


[ssba-buttons]

The Standing Committee on Plan, Finance & Budget chaired by Desalegn Wodajo expressed concern over the stagnant tax-to-GDP ratio in the past two years during the performance report presentation of the Ministry of Revenues. New taxes on property, expansion of taxable services in VAT and readjustment of the ratified excise tax proclamation will broaden the tax base, according to State Minister Meseret Bekele. He assured the standing committee that there will be a rise in the ratio within the coming year. The Committee Chair expressed a welcoming attitude towards any new taxes stating the committee's willingness to ratify any law that helps to increase revenue generation. The government seeks to broaden its tax base aiming for an 18.2pc tax to GDP ratio within the next five years. It will be monumental feet to climb, having a 10 percentage point increase in insight. Under Aynalem Nigussie, the Ministry collected 405 billion Br in the year, a marked 30.9pc jump from the last year, meeting 98pc of its tax goals. The customs commission accounts for 161.4 billion Br while domestic revenues stand at 243 billion Br. Aynalem disclosed that increased collection on behalf of regional states, which climbed by 15 billion Br from the previous year to 53.3 billion Br was the reason that the Ministry could not transfer 50 billion Br to the national treasury at the Ministry of Finance. She argued the Ministry is performing well according to key performance indicators, attributing the untransferred funds as arising from policy issues.


Radar

Ethiopia Unveils Consortium to Insure Millions of Farmers

Ethiopia has launched its Agricultural Insurance Consortium (AICE), pledging to protect three million farmers by 2026. Announced on July 3, 2025, at the Hyatt Regency, the initiative is backed by Pula Advisors and five major Ethiopian insurers. AICE plans to promote climate resilience through insurance bundled with the government's input voucher system. Leveraging AI platforms like Mavuno and PIE, it plans to standardise products, lower costs, and expand coverage to over 200 woredas. With agricu...


Radar

New Coopbank Partnership Targets Youth Economic Empowerment

The Cooperative Bank of Oromia (Coopbank) has signed a strategic agreement with Melka Ethiopia to provide loan services to over 120,000 young men and women nationwide. The partnership plans to promote youth economic empowerment by expanding access to finance and creating jobs, with a strong focus on rural and underserved areas. Both institutions held joint discussions to explore ways to improve youth livelihoods and financial inclusion. By closing access gaps, the partnership is expected to help...


Radar

Ethiopian Netpreneur Program Training Kicks Off

The Ethiopian Netpreneur 2025 Training Program has officially launched its first cohort in Addis Abeba with 64 entrepreneurs beginning their first round of training. Organised by the Global Digital Talent Academy, the initiative plans to empower local business owners, startup founders, and digital sector players with global-level e-commerce skills. At the launch event, Innovation and Technology Minister Belete Mola (PhD) urged participants to leverage the opportunity to build networks and shape...