Ethiopia: City Administration Planning to Revise Municipal Service Tariffs

The Addis Ababa City Administration is planning to revise municipal service tariffs, based on a study of the Finance and Economy Development Bureau of the city. The new City Administration, led by Mayor Diriba Kuma, that took office two weeks ago, targets to collect 2.3 billion Ethiopian birr revenue from municipal services, according to the city's budget for the 2013/14 fiscal year.

In the just ended Ethiopian Fiscal Year (2012/13), the City has collected 1.6 billion birr from municipal service. In its annual report for the current year, the City’s Finance and Economic Development Bureau said the tariff adjustment, which will see a 43 percent increase in revenue from municipal services, will contribute to the city’s budget, alongside other revenue sources such as tax and non-tax revenue.

The municipality's service revenue includes fees for trash collection, municipal user fees, profits from municipality operated utilities and service charges from municipal services and programs.

Getachew Mekuria, communication office head of Finance and Economic Development Bureau, said research on the increase is underway. “Lower level relevant offices in the city and the bureau will give their inputs on the new study before it passes to the city cabinet for final approval,” he told Capital.

The City council has already approved the budget of more than 20 billion birr for the 2013/2014 Ethiopian Fiscal Year.

Source: Capital