ERCA Collects 22.2 Billion Birr in Tax

The Federal tax structure of Ethiopia has collected 22.2 billion birr in the first quarter according to source with the Ethiopian Revenues and Customs Authority. The revenue raised from federal taxes in the first quarter is higher than the 21.5 billion birr projected by the authority for the reporting period.

The revenue collected at the federal level this quarter makes up 22% of the 101 billion birr that the authority has targeted to collect in the current financial year.

The federal taxation system includes income from customs and duties, domestic taxes and the national lottery system. The national lottery and customs contributed less than anticipated amounts of revenue according to sources.

The revenue earned from customs and duties should a deficit of 80 million birr from the projected amount because 20, 000 containers of goods are stuck at Port Djibouti due to logistic problems according to an official with ERCA.

There is also a problem with importers failing to process their goods from the inland dry ports according to Asrat Shitaye, Head of Customs at Modjo Dry Port.

The ERCA, delegated to collect tax for the city administration of Addis Ababa was able to collect 2.5 billion from direct taxes such as income tax and indirect taxes such as Value Added Tax. The revenue collected this quarter is 27.5% of the 9.1 billion birr that the authority is expecting to collect from the city in this financial year.

Source: Fortune