Revenues Minister Aynalem Nigussie

Tax Authorities collect 194 million Birr in Four months

ADDIS ABABA – Nearly 194 billion Birr has been collected in tax and other related revenues during the first four months of the current Ethiopian fiscal year, according to the Ministry of Revenues.

On Tuesday, the ministry announced that it has achieved 98.78 percent of the tax four month collection target which was set at 196.36 Billion Birr.

The total revenues showed a 19 percent (or 30.99 Billion Birr) jump from the same months last year, Revenues minister Aynalem Nigussie told a press briefing today.

Domestic sources continue to contribute much of the government tax revenues. The ministry collected 129.18 Billion Birr from its 128.49 Billion Birr target, achieving a 100.5% performance rate.

The contribution of export tax and customs duties, however, fell short of the ministry’s plan.

Customs authorities collected 64.79 billion Birr during the four-month period, attaining 95.46% of the 67.88 Billion Birr target.

Revenues minister Aynalem was encouraged by the overall performance.

“It shows the growing tax collection capacity of the Ministry of Revenues and Customs Commission and their staff,” Aynalem added.

Authorities plan to secure 529 Billion Birr in tax revenues during the current 2023/24 Ethiopian fiscal year.

Ethiopia relies on a fairly narrow tax base to raise government revenue partly due to its large informal sector, and weak tax administration. Its tax-to-GDP ratio remains less than 10% which is significantly below the average for sub-Saharan Africa of a little over 14%.

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