Ethiopia's Ministry of Finance announced that it has collected $769.9 million from exports in the first quarter of the Ethiopian fiscal year, which started on July 7, 2020. The amount has shown an increase of $46.9 million compared to the same quarter last year.
Eyob Tekaligh, State Minister of Finance, made the announcement while presenting a three-month performance report of his ministry to the Revenue, Budget and Finance Affairs Standing Committee of Parliament. Mr. Eyob pointed out that Ethiopia's export performance has exhibited growth in the past two consecutive years.
While Ethiopia's economy has been growing at a double-digit growth rate for several years, it has also achieved a growth of 6.1 percent in the 2019/20 fiscal year, despite the challenges the coronavirus pandemic posed. The state minister attributed the ongoing Homegrown Economic Reform and fiscal policy adjustment as significant contributors to the growth specifically in export. The reform agenda has created an enabling environment for tax revenue collection improvement and the reviving of export revenues, he said.
Ethiopia's federal In the 2020/21 fiscal year, the federal government plans to raise 325.2 billion Birr from domestic revenue and direct budget support from international organizations. Some 75.1 billion Birr was collected from tax and non-tax revenues in the past three months of the current budget year.
Mr. Eyob highlighted excise tax, customs duties, and tax incentives as factors that led to an increment in tax revenues. Tax incentives reduced from seven percent share of GDP last budget year to five percent have helped to save 5.4 billion birr, the report indicated.
Yayesh Tesfayehun, Revenue, Budget and Finance Affairs Standing Committee Chairperson, saying it is encouraging to see Ethiopia’s economy grow despite the challenges of COVID-19, urged the ministry to seek a resolution to the high rate of inflation, which she said is "hitting" the middle class.
However, the middle-income class in the country has been hit by inflation, she noted, urging the ministry to work with stakeholders to alleviate the problem.
Ethiopia’s economy is expected to grow by 8.5 percent during the current fiscal year.
Source: ENA
