The Ethiopian Revenue and Customs Authority (ERCA) reports meeting almost all, 95.6 pct, of the revenue they had hoped to obtain during the first nine months of the fiscal year.
In the period from July 2011 to March 2012 the authority collected 52.9 billion birr from taxes, foreign trade duty and net profit from lottery sales. The authority had planned to collect 55.3 billion birr during the stated period. Experts labelled the performance as good.
This is because it is 16.6 billion birr or 46.96 pct more money than the same period last year. ERCA’s report indicated that domestic tax contributes 26.4 billion birr, which takes 50 percent from the total revenue.
Foreign trade duty and tax is 26.3 billion birr with the contribution of 49.9 percent, while net profit from lottery sales is 62.4 million birr or 0.89 percent of last year’s totals.
In the third quarter of the budget year the authority collected 17.8 billion birr.
In the first six months of the budget year the authority collected 35.1 billion birr. That was 92 percent of what they had hoped for during that time.
The report released from the Plan Performance Assessment Directorate of ERCA said that merging with the Addis Ababa city Administration in January 2011 played a major role in their success.
It also cited cash register machines as a major factor in the increased amount of money coming into the federal coffers.
The use of sales register machine avoids fraud. ERCA began using the sales register machines nationwide since February 2008. As of February 2012 the number of taxpayers who are using sales register machines increased to 36,855 and correspondingly, the number of sales register machines that are in use by taxpayers also increased to 41,111.
The city administration planned collect 6.4 billion birr in the current fiscal year alone. In the past nine months, the city administration has obtained revenues over 4.1 billion which is about 91.5 percent of the planned amount, according to the report. ERCA plans to collect 76 billion birr in tax revenue this year. In the past budget year ERCA collected 51 billion birr.