Capital Ethiopia Newspaper

Studies show tax challenges and solutions

New studies have revealed challenges faced by the customs and tax administration in Ethiopia and potential solutions to increase domestic revenue.  A workshop  organized by the Ethiopian Revenues and Customs Authority (ERCA) and the Ethiopian Civil Service University (ECSU) under the title: “Challenges and solutions of Tax administration in Ethiopia”. A case study presented by Birtukan Girma under the title: “Impact of Tax reform and Modernization in Tax administration: the case of Kolfe Qeranyo” said that the tax system lacks quality and equity in revenue administration. Individuals who earn equal income are not paying equal tax. Some taxpayers have not used cash registers machines fully because there is a lack of accountability by the Authority. In her study she cited the presence of some 1,338 unregistered businesses alone in Kolfe Qeranyo sub-city. She also recommended assigning skilled workers in the tax office and properly utilizing cash register machines. Another study presented by Hussein Abera under the title: the implementation of Cash register system and its challenges to ERCA,” also said that there 31,000 cash register machine customers in the country. However according to him, power interruption, software failures, customer unwillingness and machine failures have been hindering the effectiveness of their usage. As indicated in the presentation, out of the total 31,000 only 3,500 cash registering machine customers are connected to ERCA server.
(The Ethiopian Herald)