Govt’s 10-month Tax Revenues Grew by 18.6% to 282.5 Billion in Birr
ADDIS ABABA – Federal tax authorities have collected 282.5 billion birr from tax and related sources in the last ten months, says a ministry of Revenues performance report today.
The figure has jumped by more than 18.63% or 44.3 billion birr from the amount secured in the same months last year.
The Ministry has achieved 93.1% of its ten-month target, set at 303.3 billion birr, the report presented to the parliament says.
Most of the total 284.5 billion birr revenues secured comes from domestic tax, amounting more than 186.7 billion birr, the report indicates. The remaining 113.8 billion birr was secured from export trade tax, and customs duties.
The performance “is encouraging” considering the impacts that the pandemic and security problems had on tax collection efforts and business activities in the period, Lake Ayalew, Revenues Minister, told MPs.
The tax collection performance was also welcomed by the parliamentarian who also commended the network it created with regional branches to exchange tax reports and information.
They, however, urged the officials of the Ministry to step up efforts to tackle contraband trade and tax evasion in the country.
These challenges should be addressed in a more effective way and digitalized as they could be a source of social, economic and political problems, said Desalegn Wedajo, as Chairperson for Plan, Budget and Finance Affairs Standing Committee of the parliament.
The Revenues Minister admitted the need to exert more effort, particularly against contraband trade, adding the ministry is currently building its response capacity.
Combatting contraband trade should not be left alone to the Ministry or custom officials as it is complex in nature, and requires the involvement of several actors, the minister noted.
The ongoing response, involving a newly introduced anti-contraband taskforce, has helped to intercept over 39 billion birr worth of illegal items so far this year, according to the ministry, Its officials plan to secure 360 billion revenues in the 2021/22 fiscal year.
