Ethiopia collects $567 million tax in December

The Ministry of Revenue of Ethiopia announces collecting 18.1 billion birr (about $567 million at the current exchange rate) in December 2019.

The amount is about 23 percent more compared to the same period last year. Including the total of 109.2 billion birr (about $3.5 billion) the country collected during the first five months of this budget year, Ethiopia has collected a total of close to 127.3 billion birr in six months (July 2019 to December 2019). At the end of the year (July 7, 2020), Ethiopia is planning to collect a total of 248 billion birr tax income.

Among the major contributions for the increase of tax income of Ethiopia, includes taking measures against contraband trade, law enforcement on those engaged in tax evasion and awareness raising about significance of tax, among others. It is also stated that during the last six months of the current Ethiopian budget year started July 8, 2019, the Ministry has managed to 7.8 billion birr (about $245 million) from tax evaders.

Reports show that tax income of Ethiopia has been growing over the past year. The country has tripled revenue collection from 11.2 billion birr in 2006 to 35.6 billion birr in 2010. Consequently the contribution of the revenue to covering the federal government’s expenditure had considerably grown from 37.54 percent in 2006 to 55.35 percent in 2010.