Ethiopia will increase revenue from the $ 1 billion excise tax – New Business Ethiopia

The Ethiopian government is expected to increase its annual income from excise tax by about $ 1 billion, a government official said.

Finance Minister Eyob Tekalign told reporters on Tuesday that the government had finalized the revision of the country's excise tax law, which allowed it to collect an additional 20-30 birrs (about 702 birrs). $ 1.1 billion) a year.

The African Development Bank recently commended the Ethiopian government for implementing a successful tax reform policy that has helped boost the country's revenues.

He said the increase in revenue from excise tax would play a crucial role in strengthening the development of various sectors, including education, health and agriculture. The ministry also plans to introduce a single treasury account to modernize the financial system, which will allow the government to use the taxes collected in an appropriate manner.

State Minister Eyob said the pilot program will involve seven government institutions during the fiscal year in Ethiopia, Eyob said. In addition, the Minister of State said that the Ministry of Innovation and Technology is developing software for e-procurement to improve good governance in the procurement management system. .

Recently, the Ethiopian Ministry of Revenue reported that it had collected a total of 145 billion Birr ($ 5 billion) during the first nine months of the Ethiopian fiscal year started on July 8, 2019.