Ethiopian Revenue and Customs Authority (ERCA) collected more than 22 billion Birr from Ethiopia’s capital, Addis Ababa, in the just concluded fiscal year. The authority collected the revenue as tax.

However, the performance is 2 billion Birr shy of the target set for the period. Yet the performance is 4 billion Birr higher than 2014/2015 fiscal year’s performance.

Commenting on the development Netsanet Abera, ERCA’s Deputy General Director and Addis Ababa’s Tax Programme and Development Works Head, said “Though there is an improvement in the amount of money collected, it is not up to our set target”.

According to Netsanet the major problems which limit the collection of tax are corruption, inefficient file systems for customers and trading without licenses.

The Deputy Director General also explained ERCA installed a computerized filing system in 88 customs offices across Addis Ababa in the aim of increasing the tax revenue. The system would enhance retrieving data and personal details of taxpayers, she noted.

The system would leave no room for corrupt tax officers that bargain bribes by concealing data. It will also dismantle illegal businesses which will contemplate an unfair advantage in market competition.

Source: Fortune