In the process of development, states not only increase the levels of tax ation, but also undergo pronounced changes in patterns of taxation, with increasing emphasis on broader tax bases, i. Productive capacity, least developed countries, ethiopia jel classification. First add all the payments in cash and in kind made to their employees in a month. Direct and indirect taxes categories of tax payers declaration of income and assessment of taxes tax incentives. Ten radio broadcast stations, eight am and two shortwave, are licensed to operate in ethiopia. Giulia mascagni is a research fellow at the institute of development studies ids, and capacity building manager at the international centre for tax and development ictd. Pdf in most developing countries, income inequality tends to worsen during initial. Vat, its historical background, merits and demerits, subjects of vat, exemptions, collection and generally administration in ethiopia will be given high attention. Corporate tax rate in ethiopia is expected to be 30. The history of taxes reveals that their coercive nature is of comparatively recent development. Taxation in ethiopia in ethiopia a company, based on its activities may be required to pat the following taxes.
The corporate tax rate in ethiopia stands at 30 percent. The ethiopian empire abyssinia was first founded by ethiopian people in the ethiopian highlands. The principal taxes currently in place are company profit tax, turn over tax valueadded tax vat, excise tax, customs duty, income tax from employment and income tax from business. Chapter four will be devoted to cover turnover tax and related concepts. Pdf taxes and tax reform in ethiopia, 19902003 researchgate.
In ethiopia, employers can determine the tax to be withheld by following 3 key steps. Although the oromo are known for their democratic republican gada system, jimma and other gibe states arose through a series of processes and historical events in the 19th century that propelled certain men into. Productive capacity and economic growth in ethiopia. Addis ababa, the capital city, is located in the middle of country and the land contains a wide altitude range, from 100 meters below sealevel on the northeastern. Taxation 2 iia issues paper series tax provisions do not typically form a principal part of iias, partly owing to the existence of the taxspecific dtts.
Beards, boots, beehives, candles, nuts, hats, horses, chimneys, water tsar peter taxed them all. The total population in ethiopia was estimated at 112. Kush is also mentioned as ksh in other texts dated between 1550 1069 bc. Chapter three will introduce you with vat new area of taxation. The reform also introduced a 5 per cent tax rate for work contracts and financial services, while a 15 per cent rate is applied to the sale of other services.
The representative assembly subsequently became the eritrean assembly. Ethiopia, landlocked country on the horn of africa, the largest and most populous country in that region. One reason for the limited role of taxation provisions in iias is that the inclusion of taxation matters can sometimes unduly complicate and draw. The detailed fiscal data is available to underpin the analysis. Further, ethiopia seems to have been one of the first countries to accept christianity. The basic principles of taxation are nearly as old as human societythe history of taxes stretches thousands of years into the past. The ethiopians claim that their conversion dates from apostolic times.
Taxation has existed in various forms since civilization began. Despite the fact that people need to pay taxes based on rationales of vertical and horizontal equities, it is not always the case that tax systems are comprehensible and transparent for tax payers especially for less literate business operators. Taxes and tax reform in ethiopia, 19902003 unuwider. Ethiopia insists, instead, that all transactions between the two nations shall henceforth be in hard foreign currency. Ethiopia as a nation, defining it as an obsolete empirestate, a prison house of peoples. In the portion, what is vat, its historical background, merits and demerits, subjects of vat, exemptions, collection and generally administration in ethiopia will. Though this is doubtful, it is unquestionable that at least from the time of athanasius, patriarch of alexandria in the fourth century, ethiopia has remained staunchly christian. This tax was also scaled according to income, much like the income taxes levied in most modern systems.
Constitutional history of ethiopia constitutionnet. Historical background landlocked country 1974 1991 ruled by a soviet backed military junta 1991 overthrew the standing government by ethiopian peoples revolutionary dramatic front eprdf eprdf was victorious in 1995 more than 300 stateowned enterprises had been privatised revised the tax code 5. Accounting began as a simple system of clay tokens to keep track of goods and animals, but has developed throughout history into a way of. A copy of a history of taxation is also available in pdf format. Ethiopia population 19602019 data 20202022 forecast.
Taxation policies developed quickly during the colonial period as wealth began to flow into europe from colonies in africa, asia and the americas. Eshetu chole, towards a history of the fiscal policy of the pre revolutionary. The capital is addis ababa new flower, located almost at the centre of the country. Value added tax vat this is a sales tax based on the increase in value or price of product at each stage in its manufacture and distribution. Ethiopia is the largest and most populated country in the horn of africa.
The process of auditing professionalization in ethiopia appears to exhibit distinct patterns during the three. Poverty is generally considered as a situation in which the underprivileged do not have adequate food and shelter, lack access to education and health services, are exposed to violence, and find themselves in a state of unemployment. In days of old the source of wealth was land and its proceeds. Referconsult a tax schedule schedule that shows how much tax is owed for different amounts of. Vat, its historical background, merits and demerits, subjects of vat. The country lies completely within the tropical latitudes and is relatively compact, with similar northsouth and eastwest dimensions. Unuwider also acknowledges the financial contributions to the research programme by. Geography ethiopia is located in the horn of africa on the continents northeast coast. Although this restriction harms both nations economies, it is far from being a cause for renewed war. Nor, on the face of it, is the small incident which actually reignites the long but apparently resolved conflict between the.
Though i was predisposed toward the ethiopia i had studied since the late 1950s, i appreciated that within its. Ethiopia, fiscal data, fiscal history, revenue, taxation. An introduction to the economic history of ethiopia, from. Box 2 concluded such dividends can be taxed by country a pursuant to the residence principle and also by country b pursuant to the source principle. The national flag is a tricolor of green, yellow, and red horizontal stripes with a blue disk and a yellow outlined star and rays in the center. Prior to greek history, ethiopia was known as kush by the ancient egyptians. Historical evolution of tax revenue, 196190 % of gdp share of different taxes in. This page provides the latest reported value for ethiopia population plus previous releases, historical high and low, shortterm forecast and long. The major types of taxes that exist in ethiopia, their meaning, rates and conditions, as provided by the federal inland revenue authority, are presented as follows.
The regime of emperor haile selassie 19301974 emperor haile selassie, who had already firmly established his control over the country since the late 1940s, further increased his control of ethiopia during the 1960s using the large scale development assistance ethiopia received from foreign government and ngo agencies, among which from the united states and european countries. Constitutional history ethiopia is the oldest independent country in africa and one of the oldest independent countries in the world. During the various reins of the egyptian pharaohs tax collectors were known as scribes. Valuedadded tax vat was introduced in january 2003 and may mean a shift from ethiopias dependence on foreign to domestic trade, but it is too. In the postwar fiscal history of ethiopia, the first generation of taxes were set between. The capital is addis ababa new flower, located almost at the center of the country.
The mass media in ethiopia consist of radio, television and the internet, which remain under the control of the ethiopian government, as well as private newspapers and magazines. Not surprisingly, taxation problems date back to earliest recorded history. Property and land values tend to increase in areas with expanding transportation networks, and increase less rapidly in areas without such improvements. A brief history of property tax by richard henry carlson this paper was initially delivered at the iaao conference on assessment administration in boston, massachusetts, on september 1, 2004. Ever since 1954, when the tax on value added was introduced in france it has spread to a. History of the postwar ethiopian fiscal system africa portal. Ethiopia corporate tax rate data, historical chart, and calendar of releases was last updated on february of 2020 from its official source. Taxation in context of ethiopia has undergone unique historical past. Given this background, it is interesting to examine the evolution of tax.
During the late nineteenth and twentieth centuries, emperor menelik ii created the current ethiopian state through expansion and conquest. The general objective of this study is to examine the impacts of value added tax on revenue generation in nigeria. The buhen stela housed in the florence museum, which dates from the reign of sety i 12941279 bc, refers to this region as kas and kash. Established around 1830, the kingdom of jimma abba jifar was the largest and most powerful of the five monarchies formed by the oromo in the gibe region of southwestern ethiopia. A history of taxation taxes are considered a problem by everyone. With your download, get the 21 best papers relevant to this one, including 20 top related papers. In a moment of dismissive hubris, the ethiopian tax system may be. Looking back, in the year of 1960, ethiopia had a population of 22. This paper assesses the treatment of corporate taxation in the ethiopian tax law and argues that the corporate tax issues are not properly addressed in a manner that attracts corporate business. Under haile selassie i reigned 193074, ethiopias economy enjoyed a modicum of free enterprise. Situated in the horn of africa, ethiopia is bordered by eritrea to the north, sudan to the west, kenya to the south, somalia to the east and djibouti to the northeast. But he is still styled the great in modern histories of russia, perhaps because of the mighty works his taxes produced. To examine the relationship between value added tax and revenue generation in nigeria to establish the effects of value added tax on revenue generation in nigeria 1.
Tax systems are usually not elaborated after proper consultation with the business community. The general concept of auditing in ethiopia by kasahun gilo. The major radio broadcasting stations include raido ethiopia, radio fana or torch a private station, radio voice of one. The existence of collective consumption of goods and services necessitates putting some of our income into government hands. Inter accounting taxation corporate and other laws view more. Great britain enforced the first general income tax in 1799 to help finance their war against napoleonic france 3. The principal taxes currently in place are company profit tax, turn over taxvalueadded tax vat, excise tax, customs duty, income tax from employment and income tax from business. The production and export of cash crops such as coffee were advanced, and importsubstituting manufactures such as textiles and footwear were established. Accounting is the system of recording, classifying and summarizing financial information in such a way that users of the information can make economic decisions based upon it. The partnership taxation model, on the other hand, taxes the income derived by the organization directly to the owners whether or not distributed. Several ancient civilizations, including the greeks and romans, levied taxes on their citizens to pay for military expenses and other public services. Ethiopian ethiopian business chamber of commerce development services network chamber of crafts german technical cooperation hwk rheinmain, germany. In addition to raising revenue, the mor is responsible to protect the society from adverse effects of smuggling.
Given this background, it is interesting to examine the evolution of tax revenue. It seizes and takes legal action on the people and vehicles involved in the act of smuggling while it facilitates the legitimate movement of goods and people. Ethiopian ministry of revenues mor is the body responsible for collecting revenue from customs duties and domestic taxes. The article covers the prehistory and history of ethiopia from its emergence as an empire under the aksumites to its current form as the federal democratic republic of ethiopia as well as the history of other areas in what is now ethiopia such as the afar triangle. Sudan, south sudan, kenya, djibouti, somalia and eritrea. The history of raising government revenue during the post1941 period goes back to march. There is no universally accepted definition of auditing.
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