Ethiopia’s policymakers, international financial institutions and the public agree that it is far better to mobilise one's resources than borrow money from international creditors and development partners. The government has tried to aggressively collect taxes from businesses and individuals over the decade. It even played the love-of-country card.
The results have been less than impressive. The tax-to-GDP ratio stayed well below the 15pc mark all throughout the decade. The government instead supplemented its coffers through loans, grants, services and fees and revenues from state-owned enterprises.
It was evident why this was the case. There was never much to tax to begin with. The private sector was too small. Businesses were never given enough chance to reinvest and grow themselves before the state started to make money from them, while the business environment was hostile to them. But with recent economic reforms by the administration of Prime Minister Abiy Ahmed (PhD), his administration seems to have at last gotten the memo that it is much more advantageous to take a small piece from a large pie than the other way around.
PUBLISHED ON
Jan 05,2020 [ VOL
20 , NO
1028]
Commentaries | Feb 19,2022
Fortune News | Dec 29,2018
Viewpoints | May 08,2021
Featured | Oct 17,2020
View From Arada | May 23,2021
Radar | Nov 03,2024
Radar | Jul 11,2021
My Opinion | Mar 27,2021
Sunday with Eden | Feb 23,2019
Fortune News | Dec 26,2020
Dec 22 , 2024 . By TIZITA SHEWAFERAW
Charged with transforming colossal state-owned enterprises into modern and competitiv...
Aug 18 , 2024 . By AKSAH ITALO
Although predictable Yonas Zerihun's job in the ride-hailing service is not immune to...
Jul 28 , 2024 . By TIZITA SHEWAFERAW
Unhabitual, perhaps too many, Samuel Gebreyohannes, 38, used to occasionally enjoy a couple of beers at breakfast. However, he recently swit...
Jul 13 , 2024 . By AKSAH ITALO
Investors who rely on tractors, trucks, and field vehicles for commuting, transporting commodities, and f...
Aug 23 , 2025
Banks have a new obsession. After decades chasing deposits and, more recently, digita...
Aug 16 , 2025
A decade ago, a case in the United States (US) jolted Wall Street. An ambulance opera...
Aug 9 , 2025
In the 14th Century, the Egyptian scholar Ibn Khaldun drew a neat curve in the sand....
Aug 2 , 2025
At daybreak on Thursday last week, July 31, 2025, hundreds of thousands of Ethiop...
Loading your updates...