Ethiopia's share of taxes as a percentage of its GDP is lower compared to other sub-Saharan African countries, Addis Ababa Chamber of Commerce and Sectorial Association (AACCSA) disclosed.

This revelation was made during a panel discussion on "the impact of the tax system and its implementation on the private sector," held by AACCSA yesterday.

AACCSA President, Mesenbet Shenkute stated in her opening remarks that the domestic revenue collected through taxes is one of the most important activities contributing to the national economy, but its share in the GDP is not more than 10 percent.

Mesenbet also explained that some issues with the tax system are the main obstacles to the growth of the private sector in the country.

She said that the chamber has set up an advocacy and consultation platform to receive complaints from its taxpayer members engaged in various businesses and discuss these issues with the relevant parties to find solutions.

Shibeshi Bettemariam, the Secretary General of AACCSA, emphasized that one of the chamber's tasks is to ensure that laws and policies favourable to the private sector are enacted and implemented effectively.

He pointed out that the tax issue is one of the most challenging business concerns that the private sector has raised.

Participants in the panel discussion also highlighted the need for tax reform, strong leadership, and political commitment to make the Ethiopian tax system more efficient and business-friendly.

The discussion also emphasized the significance of tax reform in attracting foreign direct investment and enhancing Ethiopia's competitiveness. It also highlighted the importance of the government consulting with taxpayers before implementing any tax-related policies.

The event included the presentation and discussion of various papers related to taxation in Ethiopia.

BY EYUEL KIFLU

THE ETHIOPIAN HERALD FRIDAY 14 JUNE 2024