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Tax Authority to Advance to e-payment System in September

The Ethiopian Customs & Revenue Authority (ERCA) is to launch an e-payment system in the first weeks of September 2015.

The system will first open for large tax payers (LTP) – those with a turnover of 27 million Br, annually.

This is the extension of the e-filing system, which ERCA has been implementing for the past four years for both large and medium tax payers. It was installed in 2009 by CRC Sogema, a consulting firm based in Canada, with a 90,000 dollars financial support from the Investment Climate Facilitation for Africa (ICF).

To be included in the e-payment system, one has to first be in the e-filing system. So far, 950 LTP and 800 medium tax payers, both in the western and eastern Addis Abeba branches have been using the e-filing system to declare tax, said Berihanu Mamo, Information Technology Management Director at ERCA.

There are two ways in which e-filing can be accessed; by directly using the authority’s website and authenticating through two security layers and declaring tax.

The next step will be training tax payers, which will be done in August, 2015, said Ephrem Mekonnen, director of Education & Communications at the Authority.

The system, which is launched at a pilot level, targets LTPs, who comprise three percent of the total number of tax payers and will expand to medium payers.

For the 2014/15 fiscal year, the Authority has collected 65pc, from both Customs duty and other taxes which is 83 billion Br of the revenue from LTP; a 13 billion Br increment from the performance of the previous year.

Out of the total collected revenue, 53 billion Br was collected from LTP offices from domestic tax alone. The office has planned to raise this sum to 59 billion Br by the end of the current fiscal year.

The system allows the payers to access the service at any time and place through the Internet and save time, said Berihanu.

Tags: Ethiopian Revenue and Customs Authority (ERCA),, Large Taxpayers (LTO) in Ethiopia,, E-Payment System in Ethiopia,

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