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 21-30 of 50 results

  • Can ICTs increase tax? Experimental evidence from Ethiopia

    International Centre for Tax and Development, 2018
    The widespread introduction of information and communication technologies (ICTs) and digitalised data management systems is one of the most important developments among African tax administrations in recent years. However, very little evidence is available on their effectiveness in practice, and how taxpayers respond to these changes. This paper starts filling this gap by reporting three sets of results from Ethiopia.First, we show that the available data is still not used to its full potential, despite modern ICT systems being in place....
  • To tax or not to tax: is that really the question? VAT, bank foreclosure sales, and the scope of exemptions for financial services in Ethiopia

    African Journals Online - AJOL, 2011
    The Ethiopian Value Added Tax of 2002 follows the standard approach of exempting financial services from VAT. Not all ‘financial services’ are, however, exempted from VAT. A number of services provided by the financial institutions are made taxable by the VAT laws of Ethiopia. No subject in this regard has probably attracted as much attention and controversy as that of sale by foreclosure of property held as security by banks....
  • Income tax assignment under the Ethiopian Constitution: issues to worry about

    African Journals Online - AJOL, 2010
    The revenue provisions of the Ethiopian Constitution are striking on a number of levels. By and large, the revenue provisions do not evince conformity with what the theories of fiscal federalism generally prescribe in the area of assignment of revenue powers. In addition, the revenue provisions of the Ethiopian Constitution are more detailed than their counterparts elsewhere. And, the Ethiopian Constitution departs from the assignment formula set for expenditure powers and prescribes a special procedure for assignment of ‘undesignated taxes’....
  • Notes on the salient features of tax liens under Ethiopian law

    African Journals Online - AJOL, 2013
    Tax systems are continuously changing as countries align their tax systems with evolving economic, political, and administrative conditions. Ethiopia has also pursued this track of tax reform following the shift in the economic policy of the government. Since 2002, The Ethiopian tax reform has brought about significant changes to the enforcement aspect of the tax system. The reform includes introducing tax lien into the Ethiopian tax law regime.Tax lien is literarily a scheme of charging the asset of delinquent taxpayers until the tax already due is paid....
  • Tax reform discourse and its implication on development: evidence from the VAT introduction in Ethiopia

    Mekelle University, 2015
    The contemporary tax reform projects in the world, especially in developing and transition countries, are under the sway of international institutions, theories and experts influenced by developed countries. The repercussion of such tax reforms on development endeavours of a nation can be quizzed from different angles. Ethiopia is not an exception to this influence as it can be learnt from the 2002’s comprehensive tax reform that has also introduced Value Added Tax.This paper indicates that the tax reform was a hurried moment and VAT was untimely introduced in Ethiopia....
  • Tax compliance cost burden and tax perceptions survey in Ethiopia

    World Bank Publications, 2015
    This study attempts to estimate tax compliance costs and assess views of taxpayers on aspects of the tax system in Ethiopia. The study uses evidence mainly from a survey of both formal and informal businesses in Addis Ababa and four major cities (Adama, Hawassa, Mekele, and Bahir Dar) in the four largest regional states. The survey covered 1003 formal businesses and 499 informal businesses....
  • Legality principle of taxation in Ethiopia: at the state of porosity or its non-existent from inception?

    Social Science Research Network, 2016
    Legality principle of taxation “no taxation without representation” was founded on the notion of “social contract” whereby people obey the sovereign only if its acts and actions improve their lives and enhance their welfare. This means tax in democracy may be imposed only by act of the legislature which means tax is the product of a collective consent (government). The justification for the advent of long constitutional history of the law of no taxation without representation is due to historical abuses of taxing power of American colonies by England....
  • Fighting capital flight in Ethiopia

    African Journals Online - AJOL, 2013
    There exists no generally accepted definition of the term “capital flight”. For the purpose of this article capital flight refers to Illegal capital flight, also known as illicit financial flows, which disappear from any record in the country of origin. Moreover earnings on the stock of illegal capital flight outside of a country generally do not return to the country of origin. In this regard, capital flight is creating a serious development challenges for most African economies. Ethiopia is not exceptional for this impact.The analysis of this article led to two major findings....
  • Tax exemption through letters: issues of legality and equality

    Bahir Dar University School of Law, 2014
    Employment income is one source of income tax in Ethiopia. Employees, in addition to their periodic salary, may be entitled to other payments or gains in cash or in kind during the employment relationship. The main concern of this article is to assess whether payments other than periodic salary of an employee, particularly house and transportation allowances, are taxable or not.The income tax proclamation, income tax regulation and income tax exemption directive provide employment incomes exempted from taxation. However, house and transportation allowances are not among those exempted....
  • Determinants of tax revenue in Ethiopia

    Science Publishing Group, 2018
    Fiscal deficit is the core issue of most of the developing countries over the past several decades. The reason behind the large increase in fiscal imbalance is the rapid expansion in expenditure and low revenue collection. Hence, efficient tax system is crucial for these countries. Since Ethiopian is one among developing countries, pattern of tax revenues and economic growth across country has become a significant concern. Due to aforementioned deficiencies, Ethiopia struggles with budget deficits for a long time....

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