Capital Ethiopia Newspaper

Counting the cost

The Ethiopian Revenues and Customs Authority (ERCA) instructed all nongovernmental organizations (NGOs) to deliver their past four years’ service and goods procurement lists.
Sources in different NGOs told Capital that the authority has sent a letter with an attached form for all NGOs to deliver the requested information within a one month time frame.
The letter indicated that the NGOs have to state the name of the companies with their tax identification number (TIN number) that  gave or sold them services and goods in the past four years. According to sources, the one month period given by ERCA is insufficient to compile all procurements that were carried out since 2007/08 fiscal year.
According to ERCA’s order, all procurements that have been purchased inside the country and imported have to be filled on the form, which was disseminated by ERCA in the past week, with full information of the providers.
NGOs have a duty-free privilege for purchases in relation with their charity or humanitarian works.
Tax experts said that the authority may demand to control the transactions of the companies that gave service or sold goods to the NGOs in the past four years.
In the last few years the authority has been working strongly to improve the country’s tax collecting system. As a result, it has registered a high performance compared with its previous history.
In the first eight months of this budget year ERCA collected 46.6 billion birr from tax and revenues dues. The performance has met 95 percent of the target set by the authority, but the amount has a 14 billion birr increment in comparison with similar period of last year’s budget.