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. 

Image credit: Addis Ababa, Ethiopia - January 15, 2013 : South Africa Street has been decorated with flags for Ethiopian Epiphany Celebration | mustafa6noz | iStock

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Showing 1-10 of 104 results

  • Gender and tax compliance: Firm level evidence from Ethiopia

    International Centre for Tax and Development, 2020
    Developing countries often lack tax information and enforcement capacity necessary to effectively implement instruments of a modern tax system, such as VAT, income taxes and others. An alternative strategy to increase tax compliance, and thus revenue, in these countries may depend on the capacity of policymakers to harness individual’s civicmindedness, social norms, reciprocity and cultural values of trust (Prichard, Custers, Dom, Davenport and Roscitt 2019)....
  • Tax compliance costs in developing countries: Evidence from Ethiopia

    UNSW Business School, 2017
    This paper estimates tax compliance costs for business taxpayers in Ethiopia; it also assesses factors affecting the magnitude of tax compliance costs. The paper uses survey data from a scientific sample of 1,003 Ethiopian businesses. Total tax compliance costs in the year 2012/13 were estimated to be about 4.5 percent of tax revenue collection. Tax compliance costs were found to be regressive and there was a higher burden for smaller businesses in Ethiopia than those in Kenya or Nepal....
  • Tax compliance attitude of the rural farmers: The case of Ethiopia

    ResearchGate, 2018
    Applying binary logit regression model, we argue that tax compliance is a function of the individual smallholder farmers and related variables. The evidence presented in this article, based on the 2014 5th Afrobarometer Survey. Using this method, we find some similarities, but also differences in factors that are correlated with tax compliance attitude in the smallholder farmers of Ethiopia. We confirm that people who are more happy with open administration arrangement will probably have tax compliant attitude....
  • Registration for VAT: The Ethiopian experience

    Social Science Research Network, 2012
    Registration is one of the integral parts of the VAT system. According to article 7(1)(a) of the VAT proclamation registered persons are identified as the first groups of taxpayers. Even though registered person are identified as taxpayers they are not required to pay tax, rather they are only required to collect tax from their customers. The VAT proclamation has introduced two types of registration. Those taxpayers in the first group are duty bound to register and failure to registrar shall result in penalties....
  • Reflections on tax crediting system under Ethiopian law

    Social Science Research Network, 2012
    VAT refers to increase in value of goods and services at each stages of production. Therefore, VAT is basically a tax to be levied on the value added by an organization at each stage of its rendering services or producing goods. The tax is a levy on the final consumption of goods or services and is ultimately borne by the consumer although it is collected at every stage of production or distribution. The Ethiopian VAT law allows tax credit for all taxes paid by the registered person during purchase of goods or receiving services from third parties....
  • Public financial management perspectives on health sector financing and resource allocation in Ethiopia

    Duke Sanford Center for International Development, 2020
    In this paper, we discuss Ethiopia’s approach to health delivery, trends in health financing trends, focusing on the financing arrangements and expenditure management systems through which health funding is allocated from various internal and external sources. The paper reviews Ethiopia’s public financial management system to identify challenges and opportunities to improve domestic resource mobilization for health and resource allocation within the health sector....
  • Introducing an administratively feasible environmental tax system in Ethiopia

    University of Oregon School of Law, 2018
    This Article examines the administrative feasibility of introducing an environmental tax system in the Addis Ababa City Administration (AAA) of Ethiopia. Research supports four findings regarding the difficulty of introducing such a system. First, waste collection, sludge  dislodging services, and sewer services in Ethiopia are lacking. Second, while there is a somewhat effective tax collection system for solid waste, landfill, and sludge taxes, there is not an effective tax collection system for sewer, effluent, and emission taxes....
  • Income tax progressivity and income inequality: The case of payroll tax with evidence from Ethiopia

    State Audit Office of Hungary, 2015
    This research is intended to assess the progressivity of payroll tax in respect to employment income inequality. The research is based on only ten years’ data on payroll income. Over time, the primary data were obtained using a systematic random sampling technique from nine different organisations. Qualitative data were analysed with descriptive tools and simple regression analysis, while the comparison between the marginal tax rate and the average tax rate, and the computation of the Suits Index and the Gini coefficients from the Lorenz curves were applied for the quantitative analysis....
  • Financing Ethiopia's development: Confronting the gap between ambition and means

    Ethiopian Economic Association, 2015
    Ethiopia set out – and in large measure achieved – a very ambitious program of economic and social development under its Growth and Transformation Plan I. The scale of public sector involvement was very large: for the five-year Plan period, it called for budgetary government spending and public enterprise off-budget spending of 41% of GDP, more than half of which was to come from budgetary resources....
  • Financial regulation and government revenue: The effects of a policy change in Ethiopia

    World Bank Publications, 2016
    Financial regulation affects government revenue whenever it imposes both the mandatory quantity and price of government bonds. This paper studies a banking regulation adopted by the National Bank of Ethiopia in April 2011, which forces all private banks to purchase a fixed negative-yield government bond in proportion to private sector lending. Having access to monthly bank balance sheets, a survey of branch costs and public finances documentation, the effect of the policy on government revenue can be tracked....

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