Ethiopian Tax Research Network Library

Following the third international Financing for Development Conference, the United Nations General Assembly endorsed the Addis Ababa Action Agenda. The first action area, outlined as “critical to achieving the sustainable development goals,” is mobilising domestic public resources. Countries committed to “enhancing revenue administration through modernized, progressive tax systems, improved tax policy and more efficient tax collection.”

As a member of the Addis Tax Initiative, Ethiopia has committed to stepping up domestic resource mobilisation. Currently, Ethiopia’s tax to GDP ratio stands at about 13%, below the 15% considered necessary to fund adequate public services. Key to raising increased tax revenue in an equitable manner, and without impeding economic growth, is rigorous research that can inform both tax policy and practice.

To this end, the Ethiopian Tax Research Network (ETRN) was launched in September 2017. The ETRN is coordinated by the International Centre for Tax and Development (ICTD) and funded by the Bill and Melinda Gates Foundation. The ETRN is dedicated to enhancing the generation and exchange of tax knowledge in Ethiopia. It is concerned with all topics related to taxation, ranging from tax policy to tax administration, and from academic papers to practical case studies. This library is intended to be of use to members of the ETRN, including tax practitioners and researchers from both Ethiopian and international organisations. 

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Showing 1-10 of 50 results

  • Business people’s views of paying taxes in Ethiopia

    International Centre for Tax and Development, 2016
    This study examines factors that determine business people’s attitudes towards paying taxes in Ethiopia. Based on data obtained from a survey of business taxpayers in Addis Ababa, the study finds a statistically significant relation between tax-compliance attitude and factors such as the perception of probability of audit, corruption, satisfaction with the tax administration, peer influence, gender and education.The study emphasises the need for better understanding of why taxpayers are dissatisfied with the tax administration, including perceptions of corrupt practices....
  • Determinants of tax compliance behavior in Ethiopia: the case of Bahir Dar City taxpayers

    International Knowledge Sharing Platform, 2014
    In the Ethiopian government five year Growth and Transformation Plan, it has been clearly stated that efforts will be geared towards promoting compliance and equipping tax collection institutions with adequate enforcement power which will further boost revenue mobilization at federal and regional levels....
  • Causal relationship between government revenue growth and economic growth in Ethiopia

    International Knowledge Sharing Platform, 2016
    The main aim of this study is to demystify the mystery surrounding the belief that, high government revenue growth rates engineered through the government multiplier process. The relationship between government revenue growth and economic growth is investigated for Ethiopia during the period 1974/75-2013/14. Theoretically and empirically it has been shown that revenue especially generated from taxes affect the allocation of resources and often distort economic growth....
  • The relationship between FDI flows and tax revenues in Ethiopia: an evidence based on ARDL model with a structural break

    Ethiopian Economic Association, 2016
    The study is an attempt to investigate the impact of FDI flows on tax revenues in Ethiopia both at aggregate and disaggregate tax revenue levels that include income tax, corporate tax, trade taxes and business profit tax. There exist contending views among the researchers not only on the provision of fiscal incentives to attract foreign direct investment but also with the efficacy of the foreign direct investment in augmenting tax revenues....
  • Domestic resource mobilization in sub-Saharan Africa: the case of Ethiopia

    North-South Institute, 2010
    The research analyses the major institutional constraints that have been hampering Domestic Resource Mobilization in low-income countries, focusing on Ethiopia as an example. The study examines the prospects for and constraints preventing mobilization of non-debt-creating domestic savings, both public and private.The research has relied extensively on secondary data sources, the main ones being the Ministry of Finance and Economic Development (MoFED), the National Bank of Ethiopia, and the Ethiopian Revenue and Customs Authority (ERCA)....
  • Performance and prospects of tax collection in Ethiopia

    United Nations Development Programme, 2017
    This paper explores some of the challenges to explain why tax to GDP ratio is low at 13.4 per cent despite strong and sustained growth recorded in the past twelve years, through analysis of the determinants. Also, the gap between the potential and actual tax revenue in Ethiopia will be estimated using peer country comparisons.The paper deploys both descriptive and empirical analysis. While the descriptive segment attempts to dwell on trend analysis in DRM and tax performance, the empirical model attempts to identify key determinants of the ratio....
  • Tax reforms and tax revenues performance in Ethiopia

    International Knowledge Sharing Platform, 2014
    One of the main objectives of the Ethiopian tax reforms was to generate adequate tax revenues to finance ever increasing public expenditure on poverty alleviation and development projects. This would be achieved through streamlining of the tax system to mobilize tax revenues from national economic growth. The purpose of this article is to analyze and compare tax revenues performances of the two governments in power in Ethiopia during the last 39 years....
  • Price and tax policy for semi-subsistence agriculture in Ethiopia

    World Bank Publications, 1988
    In the case of semi-subsistence agriculture where wage employment is not available, the role played by prices and taxes in determining production and consumption decisions is not clearly established by economic theories of household choice. This study demonstrates that where choices in production, consumption, and leisure can be made independently, farmers will decide what to grow on the basis of their preferences for marketed goods....
  • A fiscal history of Ethiopia: taxation and aid dependence 1960-2010

    International Centre for Tax and Development, 2016
    This paper reviews the fiscal history of Ethiopia, focusing particularly on the period between 1960 and 2010, for which detailed fiscal data is available to underpin the analysis....
  • The fiscal effects of aid in Ethiopia: evidence from CVAR applications

    Taylor and Francis Group, 2017
    This article explores the fiscal effects of aid in Ethiopia using the Cointegrated Vector Auto-Regressive (CVAR) methodology to model complex long-run and short-run dynamics. This article uses national data for 1961–2010, including a measure of aid capturing flows through the budget as measured by the recipient.The data suggests three main conclusions on the long-run equilibrium. First, government long-term spending plans are based on domestic sources, treating aid as an additional source of revenue. Second, both grants and loans are positively related to tax revenue....

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