(2011-08-24, ADDIS ABABA, Ethiopian Press Agency)-- The major objective of the new tax collection system is realizing a modern taxation so as to sustainably build the nation and ultimately enhance national confidence as well as self-reliance, the Ethiopian Revenue and Customs Authority (ERCA) said.
Speaking at a half-day panel discussion organized by the Ethiopian Radio and Television Agency (ERTA) at the National Bank assembly hall for members of the business community yesterday.
Authority Director General Melaku Fanta said that establishing effective and efficient tax system sustains economic growth, strengthen fair and equitable resource flow and empower governments to expand developmental activities. It also enables the country to build its positive image, he added.
However, the Director General said, the newly implemented tax collection system, as it introduces new and modern arrangements, cannot be free from some defects .
Especially, failure to perform tasks effectively by the tax collection executives, wrong perception of the business community towards taxation, as well as lack of awareness regarding the importance of tax in the country's development agenda have been major challenges, he added.
To this end, Melaku said, the Authority has been taking various measures to address these challenges and concerns of the business community to encourage and support developmental investors.
The Authority has so far carried out various activities to modernize the system deploying skilled manpower including door to door data collection through which about 95,000 business persons have been reached and assessed.
In addition, the authority has established Complaint Handling Units at various levels to address tax payers plea that may arise during implementation process, he indicated.
Ethiopian Democratic Party (EDP) Chairperson Mushe Semu on his part said a tax system should be designed in a manner that helps the country to expand infrastructural development, sustain economic growth and ensure good governance.
However, taxation that does not consider the payers' real capacity and income would discourage them and also bring negative consequences on the entire society.
According to Mushe, the new tax collection system though is much helpful in realizing nation's development plans is mostly dependent on presumption resulting in an unfair tax rates on most of the business persons. He also underlined the need for ensuring modern tax collection system to achieve the desired goals.
Members of the business community on their part indicated that there are problems both in the business community and the executive bodies in the effort made to establish a modern tax system.
According to them, the government should have given priority to raising the awareness of the business community before implementing the system.
Source: Ethiopian Press Agency
Speaking at a half-day panel discussion organized by the Ethiopian Radio and Television Agency (ERTA) at the National Bank assembly hall for members of the business community yesterday.
Authority Director General Melaku Fanta said that establishing effective and efficient tax system sustains economic growth, strengthen fair and equitable resource flow and empower governments to expand developmental activities. It also enables the country to build its positive image, he added.
However, the Director General said, the newly implemented tax collection system, as it introduces new and modern arrangements, cannot be free from some defects .
Especially, failure to perform tasks effectively by the tax collection executives, wrong perception of the business community towards taxation, as well as lack of awareness regarding the importance of tax in the country's development agenda have been major challenges, he added.
To this end, Melaku said, the Authority has been taking various measures to address these challenges and concerns of the business community to encourage and support developmental investors.
The Authority has so far carried out various activities to modernize the system deploying skilled manpower including door to door data collection through which about 95,000 business persons have been reached and assessed.
In addition, the authority has established Complaint Handling Units at various levels to address tax payers plea that may arise during implementation process, he indicated.
Ethiopian Democratic Party (EDP) Chairperson Mushe Semu on his part said a tax system should be designed in a manner that helps the country to expand infrastructural development, sustain economic growth and ensure good governance.
However, taxation that does not consider the payers' real capacity and income would discourage them and also bring negative consequences on the entire society.
According to Mushe, the new tax collection system though is much helpful in realizing nation's development plans is mostly dependent on presumption resulting in an unfair tax rates on most of the business persons. He also underlined the need for ensuring modern tax collection system to achieve the desired goals.
Members of the business community on their part indicated that there are problems both in the business community and the executive bodies in the effort made to establish a modern tax system.
According to them, the government should have given priority to raising the awareness of the business community before implementing the system.
Source: Ethiopian Press Agency
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