Govt Collects 336.7 Billion Birr in Tax Revenues

ADDIS ABABA – Ministry of Revenues has collected over 336.7 billion Birr in tax and related revenues during the just concluded 2021/22 Ethiopian fiscal year, its top official announced on Tuesday.

The figure has shown a 20.59 percent increase as compared to the previous year but falls short of the target tax authorities set for the budget year that ended on July 7, 2022.

Minister Lake Ayalew said the ministry of revenues was able to achieve 93.53 percent of the annual target set at 360.3 billion birr.

“This could be seen as a better performance considering the number of challenges” including conflicts that affected the daily activities of businesses and tax collecting institutions in the period, he said in a statement the Ministry issued today. 

Much of the revenue was obtained from domestic tax, amounting to more than 196.2 billion birr, the statement says.

The remaining nearly 140.5 billion birr came from export tax and customs duties.

The Ministry of Revenues, responsible for the national tax administration, claimed its tax collection capacity is showing incremental improvement annually. 

The amount collected during the past twelve months grew by more than 57 billion Birr as compared to the previous 2020/21 budget year, during which annual revenue grew by 19.6% to 279 billion Birr.

Four years ago, the annual revenue was only 152 billion birr, according to the ministry.

This indicates the tax revenues are showing consistent improvement annually, said the ministry, adding it will keep on building its capacity to help the nation cover national expenditure from domestic revenue sources.

Earlier this month, Parliament approved the 786.6 billion Birr or $15.2 billion federal budget bill for the 2022/23 fiscal year.

Authorities plan to finance 90 percent of the total budget through domestic channels, largely from tax revenue (400 billion birr).

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