Addis Ababa City collects $663 million tax in six months

The Addis Ababa City Government Revenue Authority has collected 18 billion birr (around $663 million) during the first six moths of the Ethiopia’s current fiscal year started July 8, 2018.

The Authority has achieved 95% of its target for the period, according to the report of state news agency – ENA. The majority of the income, which is 13.5 billion birr (around $479 million) is collected from direct tax. While 5.09 billion birr ($180.5 million) is collected from indirect taxes, and the remaining came from municipality service fees.

Many tax payers have managed to pay their taxes on time avoiding last minute rushes, according to the report, which quoted Mr. Shisema Gebresillasse, Director General of the Addis Ababa City Government Revenue Authority.

It is also stated that improvements have also be seen on the self declared tax audit documents, which the taxpayers have been bringing to the Authority.
Currently there are 336,173 registered under the Addis Ababa City Government Revenue Authority.

The report indicated that out of the total, 69,319 are category A or large tax payers, while 46,981 are category B or medium tax payers and the remaining 219, 873 fall under category C category or small taxpayers.

Category A tax payers whose annual turnover > 500,000 birr and category B tax payers annual turnover in between 100,000 – 500,000 birr. While those with the turnover of less than 100,000 birr are grouped under category C.

During the same period, Ethiopia has collected around $3.5 billion.