Ethiopian Ministry of Revenues has recently announced that studies are being finalized to adopt a new technology to improve the existing revenue collection system.
Even though updating the system with latest technologies and knowledge is mandatory, bringing about a significant difference on the mindsets of its employees, tax payers and the public is also crucial to set the system on the right course, says Adanech Abebe Minister of Revenue.
It was a recent event that the authority has launched a National Tax Revenue Movement under the theme “Delivering on my responsibility! Demanding my rights!” Thus, modernizing the system and developing tax paying culture are the major agendas that have become focus areas.
According to recent audit findings, the authority seemed to have much complicated challenges that would make modernizing its system and putting maximum effort on awareness and human resource capacity building inevitable. GemechuDubiso Auditor General of the Federal Audit Office says that there are three major factors that have been affecting the nation’s revenue collection system.
They are related to inappropriate implementation of tax collection regulations, delays in addressing appeals and implementation of duty free rights. These factors have been causing a great deal of impact in the national revenue collection, which over 11 billion Birr remains on the process of corrective measures.
The Ministry has recently delivered its corrective measures of the past few months based on the audit findings on its financial and legal issues, tax information, internal income tax, customs regulations and the handling, use and disposal of confiscated goods. It was reported that eleven billion Birr worth tax has not yet been collected but the Ministry is exerting level best effort particularly in terms of exceeding the momentum in addressing tax related appeals by the Commission in the Ministry.
Gemechu on the other hand says the issue of duty free items and goods rights is the other factor that the Ministry and other governmental structures from Federal to State levels need to deal with. He underlines that this is another issue that has been highly affecting the Nation’s revenue collection system.
In the past experiences government used to forgo at leats 60 million Birr annually in relation to tax exemptions, he notes adding that the tax intelligence need other modified system. The government has to supply all the budget and the resource and all stakeholders have to discharge their responsibilities if the system has to be modernized, says Gemechu. Meanwhile, Adanech says the issue is not a matter of one governmental organ.
It is rather a national agenda, which requires the effort of all responsible citizens. “Not only bringing latest technologies or software but we need to bring change of mind set of our employees and the tax payers. The interference of external elements in the tax system has been identified as one of the critical issues that are hindering the performance of our employees.
In this case we have plans to provide training and incentives that could boost the ethics, moral values and performance of our employees. Listening the Authorities correctional measures report Thursday with the special committee that follows the audit findings on Federal Ministry Offices, Speaker of House of Peoples Representatives Honorable Tagese Chaffo said that focusing on the revenue system, technology, tax exemptions and law enforcement need to go inline with capacity development on human resource and mindset construction. He stressed that making the system is very crucial.
The Ethiopian Herald, December 29/2018
BY HENOK TIBEBU
