The Revenues and Customs Authority in Ethiopia is to undertake significant organizational restructuring and operational changes expected to be comprehensive.

Senior officials at the authority have launched a study to determine areas that require reform following recommendations from the office of the Ethiopian Prime Minster according to sources.

It is expected that changes will include the decentralization of operations at ERCA requiring adjustments to the organizational structure.

The changes will take into consideration multi-modal transport and the development of industrial zones across the country said Gebrewahid Woldegiorgis, Deputy Director of ERCA.

In an effort to promote industrialization it’s expected that customs offices will be set up at each industrial zone allowing the manufacturing sector the status of an ‘authorized operator’.

This will allow manufacturers to process raw material imports on the basis of their documentation without requiring physical customs inspections according to officials at ERCA.

A task force made up of senior officials and specialists at the authority has been set up to work on a bill to be submitted to the Prime Minister claimed the sources.

The federal tax body has undergone attempts at restructuring with various changes including the introduction of the Value-Added Tax, standard integrated government tax administration system and several electronic and IT applications.

The new federal tax body created in 2008, led by Melaku Fenta, Director General has been occupied with broadening the tax base, enforcement of tax compliance and efforts to develop the capacity to mobilize resources domestically.  

Source: Addis Fortune