APA-Addis Ababa (Ethiopia) Ethiopia has collected over $6.07 billion from tax and related revenues during the past nine months of the country’s current budget year which began on July 8, 2022.
The amount narrowly missed the target with the $55, 555 the east African has set for the period, the Ethiopian Ministry of Revenues (MoR) disclosed on Monday
Minister of Revenue Aynalem Nigussie said her ministry has managed to collect 97.8 percent of its target. Domestic tax sources have continued the most to the government’s revenues, Nigussie said in a briefing.
More than 72 percent of the tax revenue was earned from domestic tax titles while the rest was collected from export trade tax and customs duties. The figure is more than $520 million from the corresponding months of the previous year.
Nigussie, however, said achieving the annual target requires exerting more efforts to tackle tax evasion and illegal cross-border trade.
Combating 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 journalists.
The government has set a $8.3 billion revenue target for the fiscal year following an encouraging 20.6% jump in annual tax revenues in the preceding year.
Despite the growth, officials of the ministry see its GDP ratio leaves much to be desired and want to push for sustained reforms to increase the tax base and administration to attain a tax-to-GDP ratio of 18.2 percent by the end of 2029/30.
MG/as/APA