The City Government of Addis Ababa has announced its plan to collect 44.7-billion-birr revenue from tax for the 2018/19 FY.
Shisemah Gebreselassie, director general of the Addis Ababa Revenues Authority, said that some 22.5 billion birr is expected to be collected from direct taxes and 11 billion from indirect taxes. Municipality revenues will generate 878 million birr and other revenues such as loans and grants are expected to contribute some 10.2 billion to mark up a 44.7-billion-birr revenue.
According to Shisemah, the target revenue has a 3.9 billion birr or a 17 percent addition to last year's revenue of the city government.
For the city's tax payers, majority of whom are non-company tax payers, the government has made adjustments. According to the director general, the 365 blanket working days which were considered to calculate payable taxes, have now been slashed to 150 to 300 days based on the nature of businesses. In addition to that, the city government has made adjustment in the rate of Turnover Tax (ToT). The 10 percent tax levied on small and micro businesses has now been reduced to five percent, Shisemah said.
There are 193,227 registered tax payers who the city authority expects to collect tax from.