In the press conference held last week, Ministry of Revenue had disclosed its performance during the departed Ethiopian budget was high as compared to the past some years.
Minister Adanech Abebe noted during the specified period the Ministry had managed to collect 198.1 billion Birr. The amount is greater by 22 billion Birr as compared to the past fiscal year.
As to the Ministry the displayed performance is heartening. It shows ensuring the performance of the law is vital to the required effect. But the contraband and illegal market are still posing hurdles for the execution of Ministry’s jobs. Serious measures have been undertaken on illegal persons.
In the just ensued fiscal year, the Ministry has planned to collect 248.3 billion Birr which is greater than that of the 224 billion Birr set by the House of Peoples Representatives. Therefore, to emerge successful, what should the Ministry do specially regarding arresting contraband and illegal market?
Teke Alemu (PhD) is an Economist. Approached by The Ethiopian Herald pertaining to the issue he said the fact that contraband and illegal market militate against the country’s economy is not subject to doubt. It was rearing its ugly head in the country starting from Hailesilase’s regime. The problem has still continued enlarging its scale.
So, extra exertion is expected from the government to address the challenge so that the plan will be translated into action spared of bottlenecks, he stressed.
Ayele Kebede is lecturer in Accounting and Finance Department of AAU. He said on his part that contraband and illegal market have been posing a huge challenge on nation’s income for lots of years. This barrier coerces the nation to lose high rate of income tax. It as well hurts legally engaged business persons.
Especially a bit prior to the reform, better jobs have been done on building better systems and on strengthening the regulatory system. And also, there are higher outcomes which come from campaigns on illegal market and contraband, he stated.
The government has announced that a huge amount of money has been seized from contraband and illegal market movement. As to Ayele, the action being taken on the sector is worthy of appreciation. It shows more changes for the better are in store.
It is not only the amount of money confiscated but it is all about changing the people’s mind. In the presence of more monitoring, the illegal market or contraband persons will get back into the legal framework, then the country can collect the money which is channeled to the wrong destination. After that it can increase the country’s income tax, he said.
Adding he said, the contraband and illegal market is a black sector which maneuvers birrs in billions. This malaise has been practiced with the conspiracy of key governmental bodies. The ongoing better outcome will continue nonstop if the past bottlenecks are thwarted.
The government needs to work more on whipping the illegal market into the legal one. It should be working more on containing the illegal or contraband circle.
“For example exposing the vehicles intercepted red handed while involved in the contraband movement must be made a point of. Their plate numbers and the drivers and those behind the act have to face the glare of media spotlight,” he said. He added this kind of actions should continue in a strengthened manner. Appropriate punitive measures must be taken on them.
Ayele underlined, additional actions are expected from the government’s side to have the expected change on the sector including uplifting the economy.
. The Ethiopian Herald July 21/2019
BY GENET FEKADE
