The Addis Ababa Revenue Bureau has launched a tax campaign. The ceremony at the Intercontinental Hotel featured Deputy Mayor Takele Uma, federal and city officials, private businesses and the general public. The goal of the campaign is to increase revenue collection.
The Mayor announced that after discussions with the city administration and the Addis Ababa Chamber of Commerce and Sectoral Association, they decided to lift half tax they were asking from 4,040 tax payers who were undergoing arbitration. This was due to claims that the tax imposed was exaggerated. During the 2016/17 budget year tens of thousands of level C tax payers had their taxes revised.
According to the Addis Ababa Revenue Bureau, about four thousand tax payers, owed half of the estimated tax dues. They were undergoing arbitration. However, now the city is considering exempting the balance and letting businesses pay half of their estimated dues.
Another 1,070 businesses are either being sued or investigated by police for tax fraud. Now the city is working to annul their charges and get them to settle the expected tax in an amicable manner.
Still another group of businesses say they are unable to pay any tax. In this case the city will evaluate their activity and revise their tax.
Thirteen thousand businesses in the city filed tax claims during the past budget year and 82 percent of those have been resolved.