Ethiopia October tax revenue up 22 percent

Compared to October 2020, tax revenue of Ethiopia for the month of October has increased by 21.8 percent to about 54 billion Birr (about $1.13 billion), the Ministry of Revenue of Ethiopia said.

Compared to last October the revenue collected by the ministry has increased by about 9.7 billion Birr. Meanwhile the target of the Ministry for the month was to collect about 56.6 billion Birr, according to the Ministry’s statement, which indicated that it has achieved about 95.3 percent of its target for the month.

Out of the total about 42.7 billion Birr is collected from domestic tax, while duty and tax from import trade has generated some 11.8 billion Birr.

The report of the Ministry indicated that it has managed to achieve good result in revenue collection in the face of the ongoing conflict in the country shows the commitment of Ethiopians to support the economy and overcome the challenges the country is facing.

The Ministry has also attributed the good result to its ‘hard working’ employees and those working for the Customs Commission of Ethiopia.

During the first four months of the current budget year of Ethiopia started July 8, 2021, the country has collected a total of 123 billion Birr.

Over the past few years Ethiopia’s annual tax income has been increasing annually. The total amount of tax the country has collected during its budget year concluded July 7, 2020 has reached 233.7 billion Birr showing 18 percent increase from the previous year.

On July 7, 2020 The Ethiopian Parliament approved a federal government budget with planned expenditure of 476 billion Birr (12% of GDP) for the 2020-21 fiscal year.

Around 75 percent of government spending was assumed to be covered by revenue and grants (305 billion Birr in revenue and 46 billion Birr in grants), while roughly a quarter of total expenditure (126 billion Birr or 3.1% GDP) was fassumed to come rom new borrowing both foreign and domestic lenders.