
Fortune News | Nov 13,2021
Business owners in Mercato were reeling from a crackdown on tax compliance that has disrupted the heart of the capital's commerce. Tax authorities have intensified efforts to enforce receipt issuance and tax payments, leading to widespread protests among traders who argue that the move exacerbates an already fragile business climate. Many shops remained closed last week in defiance, while some retailers have discreetly moved their goods under the cover of night to avoid potential confrontations. Over 10 out of 34 commercial buildings had completely closed shops for two days. A 38-year-old retailer, sitting uneasily outside his modest shop in the "Military Tera" area, voiced deep uncertainty about the future. His inventory remained untouched as he hesitated to engage in any sales, describing his interactions with local tax authorities who have threatened hefty fines and legal action for not issuing receipts, even for goods acquired years ago.
Retailers argue that the root of non-compliance lies upstream, with wholesalers and importers often failing to issue receipts. Some manufacturers support the enforcement, citing unfair competition from businesses that bypass regulations, while others feel burdened by what they perceive as a punitive tax environment. Economists advocate for a more inclusive and transparent tax regime, urging authorities to address evasion at the source. Ethiopia's tax-to-GDP ratio has plummeted from 13.2pc to less than seven percent over the past decade, pressing tax authorities for reforms. The federal government aspires to boost domestic revenues to 1.5 trillion Br this fiscal year, with a target tax-to-GDP ratio of 10.2pc by 2028. Authorities are introducing QR-coded VAT receipts to combat tax evasion. Tax experts say that effective administration requires consistent enforcement and disciplined oversight, while tax specialists warn inconsistent enforcement only nurtures evasion and unfair competition.
You can read the full story here
PUBLISHED ON
Nov 24,2024 [ VOL
25 , NO
1282]
Fortune News | Nov 13,2021
Fortune News | Jul 11,2021
Viewpoints | Mar 12,2022
Fortune News | Apr 03,2021
Sunday with Eden | Mar 26,2022
Verbatim | Nov 18,2023
Editorial | Oct 26,2024
Obituary | May 21,2022
Fortune News | Feb 01,2020
Editorial | Nov 23,2024
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...
Feb 16 , 2025
Madame Kristalina Georgieva, managing director of the International Monetary Fund (IM...
Feb 9 , 2025
This week, the African Union's (AU) annual summit in Addis Abeba is set to be more th...
Feb 1 , 2025
Urban renewal is seldom gentle to those on the receiving end of redevelopment. Take s...
Jan 25 , 2025
Grand ambitions have long driven Ethiopia's successive leaders, but they remain weigh...