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Crisis hits business community
Government asking for millions in unpaid taxes
By our staff reporter
Ethiopia's Revenue and Customs Authority operation to get back millions of birr in tax arrears from private businesses has resulted in chaos all over the city.
A few weeks back the taskforce set up to enforce the collection requested companies to submit documents describing their purchases of imports, local purchases and local sales for the past three years (1998, 1999, and 2000 EC).
Based on the documents, the taskforce commenced figuring out discrepancies when compared with already paid taxes and sent out letters claiming millions of birr.
According to our sources, as many as 55 companies have been asked to pay substantive amounts that range from four million birr to tens of millions of birr.
This huge amount of arrears created chaos among the business community, as one established businessman explained: “If there is no transparency in what the government is doing and the tax officers are not experienced and generally consider taxpayers as dishonest, it will not encourage the latter to file its taxes properly as the partnership and trust does not exist between them.
“Unless you involve the taxpayer in what your plans are, and the tax collector becomes as accountable as the taxpayer and starts to listen to criticism and open its doors for discussion, the latter will always be sensitive, and the former will not collect as much as it wishes in terms of taxes,” he added.
Some of the business people have been blaming the authority’s incapability, both in resources and manpower, for the failure to collect the revenue in the first instance. With less than three auditors for every 100 companies, it is impossible for the authority to conduct full auditing for all registered taxpaying companies.
“I already pay my taxes responsibly and I have nothing to help narrow the government’s budget deficit,” one business man told Capital, “all I have left is my company, which the Government can have if it wants.”
“Tax collection compared to GDP is quite low, leading the authority to conclude that taxes are being evaded, it therefore has to resort to other means of auditing, such as the current ‘desk auditing,’ ” speculated one entrepreneur.
For the current fiscal year, the authority planned to contribute 30 billion birr to the country’s 54 billion birr budget, however it seems that it is not going to achieve this target. It had planned to collect 15 billion birr within this half year, but it only brought in 12 billion birr, prompting it to establish the task force in an attempt to make up the shortfall.
Stupid EPRDF, always lacking transparency. Asking people to pay huge sums of money will discourage business!
When the Going Gets Tough, Tough Goes after business community!
“I already pay my taxes responsibly and I have nothing to help narrow the government’s budget deficit,” one business man told Capital
It is not the first time..following the 2000 spleet b/n EPRDF Thare are many porminent buisness men..most probable from T.P.L.F well known pulite beru members like Gebru Asrat.Seeye Abreha, Aregash Adane and Azeb Fesfin (Marie Antonitte).etc poted out of there fake buissnes..some belived they start business since 1970..bla bla bla…but the truth is that they are all corrupt TPLEFRS who stolen and loot from our miserbil people.
LEBA SISERK AITLAM SIKAFEL ENJI !
Not suprising, when the majority of Ethiopians do not support a government which does not serve its citizens. The red terror of the derge and now the red tape of the current administration has made it difficult for any legitamate business to operate in Ethiopia. But those businesses which are financially supporting the current regime are not likely to be effected, for the time being that is. The bubble of corruption has burst in Ethiopia and the world over so it is only a matter of time for Ethiopia to return to its Solomon Dynasty. “Agur na tareek imotom ye tareek na kebr yemitabikow twulid naw” Negus Haile Selassie Long Live the Constitutional Monarchy Long Live Independent Ethiopia
IS this including the TPLF companies?
The wyeanns economy is like a maseshrum that growths in one night and die the next night.
To be fair, I don’t think most businesses pay their share of taxes to the government properly. They are happy to spend lots of money for a show off but when it comes to paying taxes they are not there. Only civil servants (excepting the corrupt ones) and farmers pay taxes properly in Ethiopia.
Based on info I have received tax collectors are getting very rich by asking Business Owners to pay large amount if they do not have a share…
It is sad when there is no one to voice such kind of theift and if you go to court in most cases based on your association with the politics of this govenment then you loose..
It is sad and it will push people to close business and run away!
Where there is not justice then it is difficult to do anything in Ethiopia!
Justice to EPDRF member or Tigray people!
You wrote something very true. No merchants want to pay their taxes and also they borrow from the local banks and hide their revenue in various bank abroad. No one knows how much profit they are making. These people who own businesses come cross from all ethnic groups - they are the leeches of the country; extremely selfish.
ebakachu sawochi hulun neger complain atadirgu saw yisikibachiwal
every coment is negative about ethiopia government why?
Well,What do you expect ???
When the hard working business men of Ethiopia pay their Taxes,but the Woyanes do not !!!…I don’t believe it has been 19 years since you took over the Country by Force,Did you Hypnosise the whole Counrty ? I don’t know what is wrong with us either !!! Oh Ethiopian…Melese,Now it is not your fault it is us ! We are just watching when you break the whole Country in to pieces,Still watching!Shame on us !!!
There is conspiracy going on, the Auditors pretend you have tax over due what you paid for and threaten the hard working business peopole and they share the extra tax paid between Weyane/TPLF and the Auditor. The business people (non weyane/TPLF) are open and they care for their country and people to thrive they are not like TPLF/Weyane who are conspiring governmenter workers to steal from the society. That is corruption. When the country budget is affected then they want to loot the hard worker of Ethiopian peopole. For example, foreign currency is hard to come by and businesses (import/export) are being shut down in Dijibouti, what brought this? Our port Assab is gone in stead we are paying millions of dollars to Djibouti. In case you have not noticed, Djibouti has really flourished since Weyane/TPLF took power in Ethiopia and since Assab was gone.
What else, weyane/TPLF, are you going to blame it on Ethiopians?
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