Revenues Minister Aynalem Nigussie
BusinessNews

Govt Bags 324.3 Billion Birr in Tax Revenues

ADDIS ABABA – Tax authorities narrowly missed their target as they collected 324.3 billion Birr from tax and related revenues in the first three quarters of the 2022/23 Ethiopian fiscal year.

The amount is three billion Birr less than the 328.3 billion Birr target tax authorities set for the first nine months of the fiscal year, as per the Ministry of Revenues (MoR) report.

Minister of Revenue Aynalem Nigussie put the nine-month tax collection success rate at 97.8 percent.

Domestic tax sources have continued to contribute the most to the government’s revenues.

More than 191.92 billion Birr have been obtained from domestic taxes during the four-month period, attaining 100.79% of the 191.92 Billion birr target. It is 46.65 Billion Birr more than the amount secured in the same period last year, says the ministry.

The rest of the total revenue was collected from export trade tax and customs duties. Despite missing the target, MoR says the revenues from these taxes sources constituted 132.42 billion Birr of the total nine-month revenues.

The figure is 28.13 billion birr more than the corresponding months of the previous year.

Revenues minister Aynalem has extended her appreciation for taxpayers and others who contributed to the overall performance.

Aynalem, however, said achieving the annual target requires exerting more efforts to tackle tax evasion and illegal cross-border trade.

Combatting contraband trade should not be left alone to the Ministry or customs officials as it is complex in nature, and requires the involvement of several actors, the minister told regional and city administration officials Monday.

The government has set a 450 Billion Birr revenue target for the fiscal year following an encouraging 20.6% jump in annual tax revenues in the preceding year.

Despite the growth, officials see its GDP ratio leaves much to be desired and wants to push for sustained reforms to increase the tax base and administration to attain a tax-to-GDP ratio of 18.2% by the end of 2029/30.