The Ethiopian Revenues and Customs Authority plans to raise more than 101 billion birr in this budget year from domestic taxes, duty taxes, customs and tax revenues.
The projected revenue, although significantly higher than previous revenue, is not over ambitious as it translates to just 11.54% of the Gross Domestic Product according to Melaku Fenta, Director General of ERCA.
The authority is preparing to meet the projection and plans to continue its efforts to broaden its tax-base, enforce the use of cash register machines and improve the capacity of the tax system and of its personnel he said.
More than 26 thousand cash register machines have been distributed and more than 2000 personnel were hired in the past year to enhance the service offered by the authority and to increase information accessibility said Melaku.The authority also anticipates raising 9.9 billion taxes in Addis Ababa alone from a range of taxes including VAT and other consumption taxes.
Generating and enhancing the collection of taxes from domestic economic activity is the only way to reduce dependence on foreign aid and loans without undermining the raid development agenda of the government Girma Tafesse, Director of Support and Supervision Directorate.
The income raised from taxes enables the government to finance services to the citizens including public health care, national defense, social security and public housing he said.
It is to be remembered that ERCA raised 71 billion birr in revenue in the just concluded fiscal year.
Source: Ethiopian Herald
