Ethiopia: Better to Tax Directly Than Presumptively

opinion

The controversies surrounding tax estimations of small business have uncovered pitfalls within the tax system.

Over the past decade and a half, enormous work has been done to improve the tax system. Various proclamations, regulations and directives have been enacted. Institutional strengthening, trying to bring a large number of businesses into the tax circle, strict tax enforcement and education have been accompanied by ups and downs, partly due to the fault of the tax authorities, and partly because of the poor tax paying culture of businesses.

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