Ethiopia collects 198.1 billion birr annual revenue, Adanech Abebe, Minister of Revenues said in apres conference held today.
According to Adanech, the ministry collects a total of 198.1 billion birr in revenue has been collected from local sources during the past fiscal year 2011, out of the 213 billion birr planned for this Ethiopian fiscal year.
Though the figure is below the targeted performance it shows 22 million birr raise compared to 2010 E.C, she said,
She also stated that tax revenue collection rates show a significant increase over the years.
According to the ministry 120 billion birr, which is 61 pc of the amount is collected from domestic revenue whereas the rest 77.7 billion, 39 percent is generated from tax revenues.
The ministry also announced a target of 248.3 billion birr revenue for the coming fiscal year.
According to UNDP report, Tax collection increased from Birr12.4 billion in 2005 to Birr 165.3 billion in 2015, indicating over thirteen-fold increase in the decade. However, there is a challenge increasing the tax revenue proportionate GDP; the tax to GDP ratio remained low at 13.4percent in 2015, which is way below the Sub Saharan Average.
Although the economy has been growing at a remarkable rate averaging more than 10 percent, the slow growth in the tax to GDP ratio suggests the growth in tax collection is not commensurate with the economic growth perhaps indicating a huge untaxed potential.