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Ethiopian Tax Revenue to Increase

The tax authority in Ethiopia, expects to generate increased revenue in the coming years in spite of challenges said Tedla Mitiku,Tax Payers Education Team Coordinator with the authority.

Ethiopian Revenues and Customs Authority faced challenges including illegal trade, contraband and lack of awareness amongst the tax payers, he said.

ERCA is working with a range of bodies to lower the incidence of tax fraud and illegal trade practices to set in place a viable tax system according to Tedla.

The authority is in the process of establishing a system to address the issues and effect a increase in the revenue that it generates he noted.

The tax body was able to raise 50.8 billion birr from various taxes last fiscal year which was more than 15 billion in excess of the revenue generated in the previous budget year.

The authority was also able to raise 40.9 billion birr in tax in the first seven months of the current financial year which showed an increase of 12.46 billion birr from the same period last year said Tedla.

The growth in revenue is due to increased awareness amongst tax payers, modern tax collecting systems, the use of the integrated taxpayer identification number and successes against contraband and illegal trade he explained.

The authority anticipates raising more than 76.36 billion birr by the end of the current fiscal year.

Source: Ethiopian News Agency