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.
Loading your updates...