Revenues Ministry Collects 36b Br in Back Taxes

Aug 6 , 2022

The Ministry of Revenues reports it collected over 36 billion Br in back taxes last year. It represents slightly more than 10pc of the 337 billion Br it collected from taxes and duties in the fiscal year that ended earlier this month. Domestic taxes, primarily value-added tax (VAT), account for over half of the revenues. Customs duties generated over 140 billion Br. Though officials at the Ministry, headed by Lake Ayalew, say the performance is an improvement, tax revenues are shrinking in real terms due to pandemic, runaway inflation, currency depreciation, civil war, and political instability. Federal tax authorities plan to collect 439 billion Br this year. Authors of the 787 billion Br federal budget bill approved last month propose to cover 61pc of the budget from domestic tax revenues. It will be an uphill task. Ethiopia's tax-to-GDP ratio has been in a continued decline since 2013, reaching nine percent last year. It is much lower than the sub-Saharan African average of 17pc.


Abyssinia Bank Taps to Digital Loan Solution

The Bank of Abyssinia (BoA) is moving forward to provide banking solutions facilitating microloans. The Bank has hired an Indian-based tech vendor Newgen Software Company, that bagged the international bid on December 22, 2022. Over 10 companies have shown interest in the bid floated by the bank four months ago. The solution provider has committed to completing the project in six months with Yonas Daniel, regional manager for Newgen, and Menbereselassie Gebrekidan, procurement director at Aby...



Bank of Abyssinia rolls out banking services on a truck around Meskel square in the capital. With less than half of Ethiopian adults having access to bank accounts, financial inclusion is a major issue. The central bank revealed in August 2022 that 8,944 commercial bank branches exist in the country. The 30 commercial banks currently in operation offer credit services to less than 400,000 customers charging an average of 17pc interest on asset-backed loans...



Left) Elias Woldu and Mesnbet Shinkute sign a Memorandum of Understanding on behalf of the Ethio-American and Addis Abeba Chamber of Commerce & Sectoral Association, respectively. Some estimates put the number of Ethiopian diaspora living abroad at over two million people, larger than the population of several small nations. Continued economic and political deprivation has forced many to leave the country for better opportunities. While migration to other countries is still high, the number...