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Truck owners ask government to increase transport tariff
Ethiopian Customs and Revenues Authority (ECRA) which gathered profit tax from 7,000 trans boundary trucks in the newly presumptive tax system is to refund some of the money after the new calculation from the Ministry of Finance and Economy (MoFEC) showed some increment gaps in the recent tax gathering.
The Trans Boundary Trucks owners’ Association appealed to the authority saying they have seen up to 50 percent increment compared to the MoFEC calculation.
But the Authority said that some mistakes may occurr in the tax collection and the authority is willing to refund if it collected beyond the MoFEC calculation.
Fikadu Yared, Addis Ababa Tax Enforcement Director at ERCA said during a discussion with truck owners the Authority will refund the money once it receives the said accurate calculations from MoFEC.
“The last truck presumptive tax were applied seven years ago and like any other service the sector has started to generate more income over time. That is why we had revised the calculation from the last fiscal year. We are governed by law and will refund any money if we had collected beyond what we need to gather,” Fikadu said.
He added that the authority is carrying out a new study to apply a new presumptive tax on trans boundary trucks services and level ‘C’ tax payers.
“Due to a no receipts system, presumptive tax calculation always shows a problem in our revisions but we are working tirelessly to apply a better system”. He said.
Deju Lochae, Ethiopian Trans Boundary Trucks Association president told Capital that the recent revised presumptive tax does not put into consideration the current market of the country.
“ECRA officials assume that every truck has at least a minimum of five back and forth trips per month, but if you look at the last fiscal year report by the Ethiopian Shipping and Logistics Services Enterprise there is a maximum of 2.5 round trips per month. The inaccurate calculations done by ECRA made us pay more money than we should,” according to Deju.
He added that the association asked the government to increase the current transport tariff.
“The government increased the tax due to inflation in the last seven years; we understand that. But, the government is making us work on a tariff set eight years ago. Cost of trucks, labor, spare parts have been increasing but we are still serving our customers with the old tariff, a situation which pushed many truck owners out of the sector.”
He also called on the government to repair the roads from Dire Dawa to Galafi that have been challenging truck drivers and wasting their time.
The current tariff is set at 93 birr to transport one quintals of good from Modjo to Djibouti.