Ethiopia: erosion of tax system


The compelling nature of tax is in comparison a recent development. The original idea of ​​tax, such as the word itself derived from the medieval Latin term dunam / donam, and the English & benevolence, was a voluntary act carried out by the free will of the subject to the expenses of the government. to fund.

However, in the course of time, the facet of the concept and the relationship between the subject and the government changed and payment became more and more compulsory, as the history of the tax revealed and the Abyssinia law website mentioned.

Since that time, tax is therefore a mandatory fee or payment that is imposed on countries to finance government expenditure.

The economic growth of a country is the sum of the income that has been collected at the tax authorities. Countries that are able to collect enough money from their citizens in the form of taxes can offer a wide range of goods and services, such as social security insurances, transports and infrastructure, to their people. To realize this, it is crucial that a citizen who understands it has the benefit / value of tax payment.

Unfortunately, the tax that is collected in our country is not at the level of the wish. Bottlenecks related to the implantation of the value of tax to society, limitations in having well-qualified professionals, tax fraud and invasion, the lack of cooperation with relevant agencies are among the main challenges mentioned as a reason for underperformance in tax administration and collection, according to the members of the Federation.

According to Akaki Kality Sub City Council Standing Committee member, Dessie Abate, a number of taxpayers are not interested in paying the taxes imposed on them. Even those who commit taxes and / or evade or offer forged tax documents are few in number.

The main reason behind this problem is that most taxpayers are not well aware of the need to finance the government and what it means to contribute to the growth of the country. Although they understand that they are obliged to pay taxes, they have a weak awareness of it. That is why the government should work on that, as he said.

The government can not expand the necessary infrastructure or provide the necessary services unless it can collect the required taxes from citizens. Some of the officers working at the Wereda level do not work and give due attention to creating the consciousness of society in that respect. Citizens' awareness is even better than that of previous years.

However, because it does not develop well, much remains to be done. According to him, the application of different sensitization techniques is very necessary at Wereda and substad level.

To put an end to this and the culture of the culture of the constructive country, religious institutions, government and non-governmental organizations must cooperate with the government, he said.

"Previously, a fingerprint identification system was used to tax taxpayers and the system offered the ability to provide fast service to customers, but due to the problem with the system it is not possible to support the fast service according to the previous year.

This in itself causes an undesirable impact on the current tax administration and collection system, "he emphasized.

In line with Dessie's idea of ​​the gap between taxpayers, Yeka Sub City & # 39; s member of the Standing Committee of Woreda Council, Solomon Ayle noted that although paying tax is the duty of every citizen, in some hotels is resistant to delivering payment receipts to customers. Addis Ababa Revenue Authority also has a restriction in inspecting hotels in this respect.

In addition, he further said that there is a shortage of human power at the Wereda level. In this context, the Authority should work on and identify the challenges to contain bottlenecks.

Authority Tax Director Imposition and Gathering, Yared Fekede, said that there should be activities that the Authority would have to carry out together with the Stedelijk and Housing Development Agency to reduce the obstacles that were observed in taxation on land administration. He mentioned that they are working on upgrading the old system fingerprint identification system to retinal scanning, blood and image systems.

With regard to the activity to be undertaken in cooperation with other interests, he said that the Authority should cooperate with Land Management and the Ministry of Urban Development and Residential Building to close the gaps observed in that respect.

To put an end to this, the Authority has identified gaps which it has presented to the Cabinet of the city administration; and the government has already organized a committee to tackle the problem. Likewise, there is a new option to improve the tax administration system and to alleviate the problem with regard to taxation.

However, he added that the Authority should work to raise citizens 'and officials' awareness, especially at the Wereda level, as most of the tax is collected there. Equally important is that senior officials must work closely with the relevant authorities, as far as he is concerned.

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