ADDIS ABABA – Prime Minister Abiy Ahmed on Thursday launched a tax and customs laws compliance national compliance campaign organized under the theme: “Tax for honor of country”.
The year-long campaign was prepared by the Ministry of Revenues (MoR) and the Ethiopian Customs Commission.
The Office of the PM says the campaign aims at encouraging taxpayers to abide by established tax rules and regulations and boost their contribution to the development of the country.
“Creating a poverty free nation is possible through our collective efforts of hard work, patience and compliance to laws,” prime minister Abiy said.
“As we launch the tax & customs laws compliance national campaign today, gratitude to taxpayers that have been truthfully dispensing their national obligation,” the PM added.
Despite recent increase in tax revenues, its GDP ratio leaves much to be desired, as per officials.
The government, in its 10-year development plan, targets to achieve a tax-to-GDP ratio of 18.2% by the end of 2019/30.
Tax collection so far this year
The campaign launch on Thursday follows tax officials meeting that reviewed the seven month performance report of the Ministry of Revenues last Saturday.
As per the report, government’s tax revenue showed a 31.5% year-on-year increase in the past seven months of the 2022/23 Ethiopian fiscal year but fell short of MoR’s target.
The ministry had a plan to collect 262.1 Billion Birr taxes during the 7-month period and secured more than 236.9 billion Birr, according to the MoR’s statement.
The figure, however, showed a 31.5% or 62 billion Birr increase as compared to the same months last year. Revenues minister Aynalem Nigussie.
The minister described the performance and offices working in tax collection as encouraging, calling for renewed efforts to hit the annual target.
The Ministry plans to secure 450 Billion Birr in tax revenues in the 2022/23 fiscal year. Domestic direct taxes, which are the major source of tax revenue in Ethiopia, are expected to contribute 266.9 Billion Birr and taxes on export trade generating 183.3 Billion Birr.