2merkato

The tax authority of Ethiopia, ERCA, collected 35 billion birr on the federal level over the last two quarters. The authority was also able to raise 3.2 billion birr in revenue and tax from Addis Ababa.

The tax collected met the target set by the Ethiopian government in spite of being 3 billion birr less than expected by the tax authority.

The tax raised in the last two quarter exceeds the revenue collected for the same period last year by 10.2 billion birr.

The Ethiopian Revenues and Customs Authority is ready to introduce a new customs management software system expected to cost an estimated 162 million birr. The new IT system will replace the Automated Systems for Customs and Data currently being used by the authority.  

ERCA decided to change its current technology installed in 12 years ago because it is not able to accommodate the new systems required as part of the customs reform program according to Nigussie Seid, Team Coordinator for Software Development with the authority.

The current system is unable to integrate or interface with the custom reforms that are underway he explained.

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.

Tax payers voiced some concerns at a consultation meeting organized by the Ethiopian Revenue and Customs Authority last week. The meeting was organized to raise awareness amongst tax payers on the higher end of the scale.

Business owners told ERCA officials that employees at the authority sometimes forget that their role involves serving public interest.

There are corrupt and incompetent ERCA employees admitted Nebyu Samuel, Deputy Director of ERCA. The authority recognizes this gap and is working on capacity building through training and education he said.

The tax authority in Ethiopia, expects to generate increased revenue in the coming years in spite of challenges said Tedla Mitiku,Tax Payers Education Team Coordinator with the authority.

Ethiopian Revenues and Customs Authority faced challenges including illegal trade, contraband and lack of awareness amongst the tax payers, he said.

ERCA is working with a range of bodies to lower the incidence of tax fraud and illegal trade practices to set in place a viable tax system according to Tedla.