Sunday, October 1, 2023
BusinessTech helps tax authority achieve beyond target

Tech helps tax authority achieve beyond target

The implementation of ET-Tax revenue collection system and monitoring activities helped the Addis Ababa Revenues Bureau secure a higher than planned collection of tax in the first half of the budget year, The Reporter has learnt.

According to Mulugeta Tefera, the head of the Bureau, who spoke to The Reporter, said the Bureau planned to collect 26.5 billion birr between July 8, 2021, and January 8, 2022, but managed to collect 31.45 billion birr.

“The revenue collected in the past six months is 8.5 billion birr higher than last year’s same period. The bureau has already collected 64.7 percent of its target revenue for the fiscal year,” Mulugeta said.

He also indicated that one of the major activities undertaken to achieve the plan is the implementation of new technology based systems.

For example, an individual who claims to have traded more than 100,000 birr is required to provide a bank slip in addition to machine produced (Z-report) and manual receipts. But, the collection system eased the process of paying taxes, helping the bureau collect more, in a better and efficient way.

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As a result, taxpayer’s time has been saved and service delivery has improved apart from easier collection of overdue taxation.

The bureau announced that it has collected nearly 24 billion birr from direct tax, which is more than last year’s full year performance, which stood at 17.5 billion birr.

Revenue from indirect tax reached 7.1 billion birr, which is two billion birr higher than the same period in the previous year.

On the other hand, the municipal revenue collected in the past six months stood at 458,009 birr. The revenue in the same category in last year’s same reporting period was 349,054 birr.

Apart from consultations with concerned stakeholders on ways to achieve its plans, the Bureau sent out 213,523 short messages to taxpayers.

In addition to this, the Bureau is addressing its deficiencies in law enforcement, fulfilling its responsibilities of collecting better revenue, Mulugeta said.

The city’s Trade Bureau is also working to prosecute traders functioning without trade licenses, fake business licenses or with a copy of other peoples’ business licenses, technically evading taxation.

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