Members of the Ethiopian Transport Employers Federation are facing serious difficulties adhering to bookkeeping standards introduced by the Revenues Bureau. Organised under 13 share companies, the pressure from tax authorities has prompted the 1475 members to chart a course on how to navigate hurdles such as acquiring receipts for expenses during road trips.

In response to the three-year-old ordinance by the capital's tax bureau, the Federation had filed letters to the ministries of Transport & Logistics, Revenues and Finance, citing difficulties in providing proper expense reports as a significant portion of their costs is conducted without receipts.

Berhane Zeru, president of the Federation, expressed frustration over the lack of progress in resolving the matter. The tax-related complications are compounded by the imminent renewal deadline for business licenses, adding pressure on the transport employers. Berhane highlighted the intricacies of the document request process, citing refusals from certain branches to provide clearances.

He conveyed the pervasive anxiety among drivers facing challenges in meeting tax requirements. The urgency of resolving these issues was attributed to renewing insurance policies as he hopes a recent meeting with Minister Ahmed Shide, will aid in temporary relief to the tax-related woes faced by transporters.

"The entire document request process is complicated," he said.

Transporters face difficulties in obtaining receipts for various expenses incurred on the road, including tyre repairs, refreshments, and entrance and exit fees at Djibouti ports. The issue lies in documenting these expenses properly, leaving them struggling to provide detailed expense reports as required by tax authorities. Owners, in turn, are subjected to additional per diem payments.

Teshome Geremew, head of the Addis Ethiopia Transport Logistics Company, applauded the Federation's efforts but recommended a structural change, considering the upcoming legal requirement for most transport providers to transition to commercial entities.

"We'll have to deal with that soon enough," he said.

Legal advocates faced a similar problem in managing multiple miscellaneous expenses but secured an exemption this year after presenting a detailed study to the tax authority.

Mulay Weldu, director of Tax Policy at the Ministry of Finance, acknowledged ongoing studies on the tax' issue but cited limitations in evaluating certain taxpayers under the current income tax proclamation.