Capital Ethiopia Newspaper

Harar and Dire Dawa warned

The Ethiopian Revenue and Customs Authority (ERCA) officials are cautioning the business community in Harar and Dire Dawa about the way they are handling their payment receipts.
ERCA met with business leaders from the two towns a week ago and warned them that businesses were not issuing adequate receipts when they conducted transactions.
ERCA officials in Dire Dawa told Capital that business owners are not using cash register machines often enough despite the fact that they are VAT registered.
During the discussion officials strongly advised traders to start using cash register machines for their transactions.
Local and federal officials warned participants that the government will enforce the law without warning if business owners do not install cash register machines right away, a resident who attend the meeting told Capital. He said that the officials strongly demanded the machines be installed immediately. 
Right now cash register machines are mostly used in large towns. When the system was first implemented four years ago, Addis Ababa was the main target. However, over the last year, the government has increased the number of cash register machine suppliers in order to spread the system to smaller, regional towns.
Many regional towns have been complying but Dire Dawa and Harar did not receive a proper introduction to the system and officials say they are one of a handful of major towns that have yet to install the machines.
“There are sufficient machines supplied by importers, so you have to use the machine without delay,” the officials cautioned the traders of the two eastern towns.
According to information obtained, in Dire Dawa and Harar, there are a lot of businesses that are VAT registered, which should issue the required receipt for their businesses so that the authorities can control the total sales turnover. It appears that customers in that area are ill informed about the importance of asking for receipts. The cash register machine that is recognised by ERCA is networked with the customs data base. It allows the authority to control daily transactions. The system is the major strategy for controlling tax evasion of the business owners.