Revenues Minister Aynalem Nigussie
BusinessNews

Govt Secures 225 Billion Birr in Six-month Tax Revenue

ADDIS ABABA – The government of Ethiopia has obtained over 225 billion Birr in tax and related revenues in the past six months, the sector’s top official disclosed on Wednesday.

The figure has shown a 31.8% or 54.6 billion Birr increase as compared to similar months last year, according to the Ministry of Revenues report. The ministry, however, nearly missed its target tax for the first half of the 2022/23 fiscal year.

Tax authorities started the fiscal year in July 2022 with a plan to collect 228.2 Billion Birr during the first half of the year.

Revenues minister Aynalem Nigussie said the ministry managed to achieve 99% of the target for the period, collecting 225.9 Billion Birr in taxes.

Domestic tax collection on target

Tax officials have been able to outperform their revenue target from domestic tax but failed to hit the target for foreign trade taxes.

Aynalem said the ministry of Revenues achieved 100.6 percent of the 137 billion Birr planned to collect from domestic taxes.

Accordingly, domestic direct taxes, which are the major source of tax revenue in Tax revenue in Ethiopia, contributed more than 138.8 billion Birr to the six-month tax collection.

The figure has increased by 31.7% or 33.4 billion Birr as compared to the same months last year, said the minister.

In the same period, taxes on foreign trade contributed 87.11 billion Birr to the total revenue.

Though it showed a 32.1% (21.17 Billion Birr) year-on-year jump, authorities put the achievement rate at 96.5%. The target for the period was to collect 90.26 Billion Birr.

Taxpayers praised

Overall, the ministry sees the tax collection performance of the first two quarters of the fiscal year as successful.

The Revenues Minister attributed the success to the dedicated team of the Ministry of Revenues ranging from at management level to tax collectors.

“Taxpayers have also played a big role in the performance and should be commended,” Aynalem said, extending her gratitude to all who worked with the ministry and contributed to the achievement.

The performance put the Ministry on course to attain its annual tax revenue goal which is set at 450 Billion Birr.

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