Ethiopia and Russia Forge Partnership on Digital Tax Transformation
© Photo FANA
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Ethiopia faces challenges in tax collection due to a large informal economy, inefficient systems, and low compliance. Outdated infrastructure and skilled personnel shortages also impact transparency and revenue. To address these, Ethiopia is modernizing its tax systems, broadening the tax base, and collaborating internationally.
Ethiopia’s Ministry of Revenue and the Russian Federal Tax Service entered into a strategic partnership to advance digital tax transformation, state-owned Fana Broadcasting Corporate reported on Wednesday.
The memorandum of understanding was signed by Ethiopia’s Minister of Revenue, Aynalem Nigussie, and Elisey Balta, Head of the International Cooperation Directorate of the Russian Federal Tax Service. This agreement aims to strengthen bilateral cooperation, enabling Ethiopia to modernize its tax administration systems and enhance domestic revenue collection.
During the signing ceremony, Aynalem Nigussie highlighted the significance of the partnership, noting that it aligns with Ethiopia’s status as a member of BRICS. She emphasized the country’s determination to use this collaboration to expand its economic opportunities, address development challenges, and optimize revenue collection.
“This agreement demonstrates a strategic partnership that has made a positive difference in collecting domestic revenue through digital tax transformation,” she was quoted as saying.
Balta commended Ethiopia’s commitment to improving its revenue systems, describing domestic revenue as the cornerstone of government financing. He expressed Russia’s willingness to share its expertise, particularly in digital tax transformation, which has revolutionized tax administration in many countries. He added that the Ethiopian government is undertaking commendable activities to increase its domestic revenue collection capacity.
