ADDIS ABABA: Prime Minister Abiy Ahmed, President of the Prosperity Party, emphasized the need for a modernized tax collection and administration system to boost Ethiopia’s revenue and unlock its development potential. Speaking at the Prosperity Party Executive Committee’s nine-month performance evaluation in Gorgora, Amhara Region, Abiy highlighted the country’s untapped potential and growing demands.

According to Ethiopian News Agency, tax revenue increased from 324 billion Birr to 374 billion Birr over the 2015 and 2016 fiscal years. However, he noted that the revenue still falls short of the nation’s capabilities and needs. Abiy urged revenue sector institutions to adopt modern strategies and technology-driven systems to combat tax evasion and fraud, expand the tax base, and invest in projects to secure future prosperity. By effectively managing to double the current revenue, Abiy believes Ethiopia could undertake transformative projects to benefit future generations. He called on revenue institutions to fulfill their responsibilities diligently and adapt to evolving times with technology-assisted tax collection and management. Aynalem Neguse, a member of the Prosperity Party’s Executive Committee and Minister of Revenue, reported that domestic revenue and tax collection have grown despite recent challenges. Enhancing revenue sector performance is crucial to achieving the national vision of prosperity s
et by the ruling party and government. Neguse acknowledged that the country’s development capacity remains limited despite growing income and pledged to strengthen technology-assisted tax collection, expand the tax base, and control smuggling with a digital system and reinforced border measures.