21 December 2018

Ethiopia: PM Abiy Launches National Tax Revenue Movement

Photo: Addis Fortune
Prime Minister Abiy Ahmed (file photo).

Addis Ababa — Prime Minister Abiy Ahmed has launched today the National Tax Revenue Movement that aimed at improving tax collection system of the country.

The movement has launched under the theme of "Delivering on my Responsibility: Demanding my Rights".

Addressing the launching ceremony, which was held at the African Union hall in Addiss Ababa, PM Abiy said tax revenue is one of the critical foundations of a country's civilization and development.

Researches showed that tax revenues are critical to sustainable development as they are providing governments with independent revenue for investing in development, reducing poverty and delivering public services.

Taxation is one of the most important ways in which developing countries like Ethiopia can mobilize their own resources for sustainable development, he said.

He stated that expansion of infrastructure will create strong and competent private sector which in turn create plenty of jobs opportunities for citizens.

So, building strong infrastructure is critical which supported from tax revenue, the Primer underscored.

He urged tax payers to develop an enhanced frame of mind of tax payment responsibility through which they demonstrate their love of country and family.

The Prime Minister has also called the public to reprimand such appalling trends of tax evasion and illicit trading to enhance the current low status of tax collection system.

Ethiopia still mobilizes less than 10.7 percent its GDP in tax revenues, which is far less than even the Sub-Saharan average, he pointed out.

During the occasion, renowned dignitaries drawn from various professions were also assigned to serve as tax 'ambassadors' using their respective expertise.

Taxation offers an antidote to developing countries' dependence on external concessional finance and provides the fiscal reliance and sustainability needed to promote growth, it was indicated.

The event was organized by the Ethiopian Revenues and Customs Authority (ERCA) aims to highlight the role of a just tax revenue collection system in realizing Ethiopia's ascendancy to middle income status by 2025.


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