Need for Improved, Modern Tax Collection Mechanism Stressed to Meet Budget

Addis Ababa July 07 /2018 improved modern tax collection mechanism and strict controlling system are crucial to collect the planned 68 percent of the 346.9 billion birr new budget, according to some members of the House of People’s Representatives (HPR).

The HPR approved yesterday 346.9 billion birr budget for the 2011 Ethiopian budget year, of which 68 percent or 235.7 billion birr is expected to be raised from in land revenue.

In an exclusive interview with ENA, Revenue and Customs Affairs Standing Committee Chairperson Birhanu Abebe said “collecting tax as per the plan has long been a challenge due to various reasons.”

Realizing this, the government has been giving due attention to improving tax collection as the nation could not implement the budget endorsed without appropriate and effective tax collection, he pointed out.

According to him, Ethiopia’s tax collection mechanism is ineffective when compared with other African countries.

Therefore, “transforming the tax system, supported by IT, and building the capacity of workers in the area is crucial, while the House of People’s Representatives strictly controls the executive body,” he added.

Foreign Affairs Standing Committee Chairperson, Tesfaye Daba said “strengthening the ongoing tax reform towards modernization and effectively implementing it are necessary.”

Tesfaye stressed that “tax payers need to get timely and appropriate services, and tax imposed on citizens should be fair and transparent.”

According to him, members of the HPR have double burden in raising the awareness of citizens towards encouraging their constituents in carrying out the responsibility of paying tax.