Ethiopia said Wednesday that a highly unpopular value added tax (VAT) put in place two years ago is now responsible for nearly half of its tax revenue and urged other developing African nations to adopt the scheme.
Earnings from the 15-percent VAT now amount to 43 percent of the money taken in by Ethiopias Federal Inland Revenue Authority (FIRA) in 2004-2005, said the head of the agency, Woldegebriel Naizgi.
Officials said FIRA had collected the equivalent of 390,4 million dollars (319,2 million euros) in taxes in 2004-2005, of which VAT and related tariffs accounted for the largest single chunk.
Kilde: www.worldbank.org
