The Revenue and Customs Authority in Ethiopia cautioned the businesses in Dire Dawa and Harar to handle receipts better.
Officials from the authority met with members of the business community last week and warned that businesses were not issuing receipts for all their transactions.
The government will enforce the law if businesses do not put in cash register machines and use them appropriately said federal and local officials to participants.
The new tax system was first implemented in Addis Ababa and has widened to include regional towns in the last year. Regional towns have by and large complied with the system but Dire Dawa and Harar did not receive a proper orientation to the system and have failed to install the cash register machines as required.The supply of machines by importers is sufficient for the need of businesses in the two towns and use of the cash registers is expected said the officials at the meeting.
There are many businesses that are VAT registered in Dire Dawa and Harar but not all employ cash register machines to issue receipts and to record the total sales turnover according to sources.
The cash register machine authorized by ERCA is networked to the database of the customs authority allowing the tax officials to overview daily transactions. The system was put in place as a mechanism to control tax evasion.
Source: Capital
