Revenue & Custom An Ethiopian Business News organization operating in print and online platforms. EBR provides deep analysis to major business stories and trends facing the private sector in Ethiopia. The Ethiopian Business Review Magazine is for Middle or senior level managers, academicians, business consultants and others working in the areas of business. http://ethiopianbusinessreview.net Sun, 21 Oct 2018 16:18:06 +0000 Joomla! - Open Source Content Management en-gb ERCA Plans Training 1200 Transit Operators http://ethiopianbusinessreview.net/index.php/revenue/item/118-erca-plans-training-1200-transit-operators http://ethiopianbusinessreview.net/index.php/revenue/item/118-erca-plans-training-1200-transit-operators

Ethiopian Revenues and Custom Authority (ERCA) is planning training of more than 1200 logistic operators in November, 2012 Ethiopian Business Review learned. Applicants have paid 6528.84 birr each to receive training. Upon completion, the trainees will receive certificate of competence which will make them eligible to get license for transit and logistics services.

The authority set the new training after considering repeated request by importers and exporters.

A first batch of 306 trainees will take the training at the Civil Service University for 33 days, Aster Haile, Permit Forward Senior Officer at ERCA told Ethiopian Business Review. The remaining applicants will also take the training in subsequent rounds.

According to sources at ERCA, the Authority has been receiving complaints from many disappointed importers and exporters, who suffer from mistreatment on the hand of transit operators. The complaints filed include request of unfair service fee to clear their properties. “I am too much disappointed with my transit operator”, a spare part importer told the Ethiopian Business Review. I can not even get accurate information regarding the status of my goods, the importer said.

Transit operators do not accept such allegations. “Importers complain because they do not understand the steps required to clear their goods” Weynishet Bekele, who is engaged in the transit and logistics business, said. The absence of efficient services at the Ethiopian Shipping and Logistics Enterprise and at custom check points and also the inadequate number of trucks to pick goods from port contribute to the delay of delivery of goods, she said.

For her the problem can not be solved by training additional transit service operators alone; it also needs to equip the state bureaucracy with skilled human resources and technologies that shorten processes and reduce paper work.

The training that ERCA will soon commence is a response to complaints that importers have filed for long. As most of the trainees are drawn from such companies, it will allow them to clear their properties on their own, by getting a transit license using the certificate of competence of their staff who will take the training.

Other institutions which will have their staff trained include export enterprises, authorized economic operators and different governmental offices. It is hoped that importers and exporters will have their own transit officers in the future, Aster added.

According to the Customs Service Directorate at ERCA, there are 922 transit operators in Ethiopia. The planned training will increase that number to more than double.

]]>
seyoum.g@ethiopianbusinessreview.com (Seyoum Getu) Revenue & Custom Thu, 15 Nov 2012 14:26:08 +0000
Ethiopia’s Major Tax Revenue Sources in 2011/12 http://ethiopianbusinessreview.net/index.php/revenue/item/115-etmajtxrev1413 http://ethiopianbusinessreview.net/index.php/revenue/item/115-etmajtxrev1413
Ethiopia’s Major Tax Revenue Sources in 2011/12

Ethiopia’s Major Tax Revenue Sources in 2011/12
Source:ERCA
Illustration by EBR

The Ethiopian Revenue and Customs Authority’s achievement in collecting an aggregate of 70.7 billion birr in 2011/12 is 39.22 per cent higher than the previous year, and almost 93 per cent of its stretched plan for 76.3 billion birr. However, the government expected ERCA to collect 70 billion birr for the year. From what it was supposed to collect as per the plan of its supervisors, ERCA’s achievement was above target.

The last fiscal year month to month performance of the Authority was stable, except the anticipated huge growth of revenue in October and June. This is not strange since these two months are the time for companies to pay their profit taxes. Last year, after recording total monthly revenue of 4.8 billion birr in September, the revenue reached 10.6 billion birr in October. This is more than twice the revenue collected in September.

Monthly revenue collection by sector 2011/12

Monthly revenue collection by sector 2011/12
Source:ERCA
Illustration by EBR

There were also expected revenue rises in the foreign trade section. Though traders import goods from abroad throughout the year, right before holidays, revenue from foreign trade increases. In 2011/12, the foreign trade revenue increased in August (before the Ethiopian New Year), November (before the Ethiopian Christmas) and April (before Ethiopian Easter).

According to the first two months (July and August) of the 2012/13 performance, the authority collected over 16 billion birr, over 12 per cent higher than the 14.7 billion target. This came at a time foreign trade has been in dire shortage in the country, seriously effecting foreign trade performance, hence revenue from custom.

From the total revenue collected, domestic tax took the lion share of 56.75 per cent (9.36) billion birr, while foreign trade tax and duty constitutes 43.14 per cent (7.11) billion birr and net profit form lottery sales took the balance. This shows that the authority kept its upward move in generating sustainable revenue for the government.

ERCA has a plan to collect an aggregate of 101.53 billion birr at the end of the current fiscal period.

]]>
info@ethiopianbusinessreview.com (Ethiopian Business Review) Revenue & Custom Thu, 01 Nov 2012 11:45:52 +0000