The Government of Ethiopia is set to boost its annual income from excise tax every year by around a billion dollars, said a government official.
Finance State Minister Eyob Tekalign told reporters on Tuesday that the government has finalized revision of excise tax law of the country that enable the government to collect additional 20 to 30 billion birr ($around 702 million to $1.1 billion) annually.
The Government of Ethiopia is recently praised by the African Development Bank for implementing a successful tax reform policy that has boosted the income of the country.
He stated that the increase of revenue from excise tax will play a crucial role in enhancing the development of various sectors, including education, health and agriculture. The ministry is also planning to introduce single treasury account to modernize the finance system which will enable the government to utilize collected taxes in proper manner.
The State Minister Eyob indicated that the pilot program will be made on seven government institutions this Ethiopian fiscal year, Eyob added. Besides, the state minister said Electronic-Government Procurement (E-GP) software is being developed by Ministry of Innovation and Technology to improve good governance in procurement management system.
Recently the Ministry of Revenue of Ethiopia has indicated collecting a total of 145 billion birr ($5 billion) during the first nine months of Ethiopian fiscal year started July 8, 2019.