The Ethiopian Revenues and Customs Authority (ERCA) announced that it has raised 1.6 billion birr in tax from Addis Ababa, in the first quarter of the current fiscal year. The money collected is double that of the same period last year.
Revenue raised from municipal services increased the revenue from the capital city to 1.75 billion birr, making up 30% of the sum the tax authority plans to raise this fiscal year.
The Ethiopia tax authority raised an additional 16 billion from tax and non tax revenues on the federal level in the past quarter.
Domestic taxes make up more than half of the money raised, 8.4 billion birr, while 7.6 billion birr was raised from customs and 20 million birr from lotteries.Revenue from domestic taxes showed an increase of more than 3 billion birr from that of last fisal year. The increase is said to be due to increased efforts to widen the tax base and reassessment of tax classifications of businesses.
ERCA has also enhanced its efforts by requiring businesses to install cash register machines, enforcing disciplinary measures against business who fail to comply to tax regulations and carrying out numerous training programs for taxpayers.
The tax collection for this quarter also included measures taken in response to tax evasion allegations including frozen assets owned by Oil Libya Ethiopia estimated at 115 million birr.
The money raised by the ERCA is 46 million birr short of the 16.6 billion birr the authority has projected to raise this quarter.
Source: Addis Fortune
