Showing 13 - 24 of 27 publications
April 2019

Where the Gap Lay: Presumptive Income Tax Assessment for Small and Micro Enterprises in Addis Ababa City Administration

by Amanuel Mekonnen Workneh & Endalkachew Mulugeta Baileyegn with Graeme Stewart-Wilson

This study is focused on the presumptive tax reassessment of small and micro enterprises (SMEs) in Addis Ababa City Administration that took place in 2017. The reassessment process was based on average daily revenue estimates calculated by teams of assessors and validated by a series of committees. The release of the reassessment results in 2017…

Read more

Are There Any Reliable Data on Wages in Low-Income Countries? Observations and Lessons from Ethiopia

by Andualem Mengistu & Giulia Mascagni

Administrative data from tax returns have recently become available in many African countries thanks to the modernisation of revenue authorities and the digitisation of tax records. The availability of these data has opened new opportunities for policy-relevant analysis of real-life taxpaying behaviour. However, despite the increased availability of these data, a gap remains in many…

Read more

Can ICTs Increase Tax? Experimental Evidence from Ethiopia

by Giulia Mascagni , Andualem Mengistu & Firew Woldeyes

This ICTD Research in Brief is a two-page summary of ICTD Working Paper 82 by Giulia Mascagni, Andualem Mengistu, and Firew Woldeyes. This series is aimed at policy makers, tax administrators, fellow researchers and anyone else who is big on interest and short on time. African tax administrations have experienced rapid modernisation in the past…

Read more
July 2018

Can ICTs Increase Tax? Experimental Evidence from Ethiopia

by Giulia Mascagni, Andualem T. Mengistu & Firew B. Woldeyes

The widespread introduction of information and communication technologies (ICTs) and digitalised data management systems is one of the most important developments among African tax administrations in recent years. However, very little evidence is available on their effectiveness in practice, and how taxpayers respond to these changes. This paper starts filling this gap by reporting three…

Read more
March 2018

Subnational Value Added Tax in Ethiopia and Implications for States’ Fiscal Capacity

by Wollela Abehodie Yesegat & Richard Krever

In most federal systems, state governments are funded through a combination of direct fiscal transfers from the central government, and the revenue they collect directly from locally adopted taxes. Ethiopia is a federal polity, but follows a slightly different path in the case of its most important tax source – value added tax (VAT). As…

Read more

Subnational Value Added Tax in Ethiopia and Implications for States’ Fiscal Capacity

by Wollela Abehodie Yesegat & Richard Krever

Fiscal federalism comprises the distribution of functions and tax revenue sources between central and regional governments. Fiscal federalism issues in respect of value added tax (VAT) do not arise in unitary states; in federal states questions arise as to which level of government should levy the tax, and how revenue should be divided between central…

Read more
October 2017

Urban Fortunes and Skeleton Cityscapes: Real Estate and Late Urbanization in Kigali and Addis Ababa

by Tom Goodfellow

In many parts of Africa, societies that remain primarily rural are experiencing accelerated urban growth and highly visible booms in property development. In the absence of significant industrialization, investment is pouring directly into what Lefebvre and Harvey characterized as the ‘secondary circuit’ of capital. Debates about the drivers of investment in real estate are longstanding…

Read more
March 2017

The Fiscal Effects of Aid in Ethiopia: Evidence from CVAR Applications

by Giulia Mascagni & Emilija Timmis

This article explores the fiscal effects of aid in Ethiopia using the Cointegrated Vector Auto-Regressive (CVAR) methodology to model complex long-run and short-run dynamics. We use national data for 1961–2010, including a measure of aid capturing flows through the budget as measured by the recipient. The data suggests three main conclusions on the long-run equilibrium….

Read more
December 2016

Linking taxation and social protection: Evidence on redistribution and poverty reduction in Ethiopia

by Kalle Hirvonen, Giulia Mascagni & Keetie Roelen

The reduction of poverty, and more recently inequality, are pressing concerns in many low- and middle-income countries, not in the least as a result of the Sustainable Development Goals committing countries to significant improvements by 2030. Redistribution is important for reaching these goals, and is shaped by countries’ tax and welfare systems. Despite redistribution resulting…

Read more

The Corporate Tax Burden in Ethiopia: Evidence from Anonymised Tax Returns

by Giulia Mascagni & Andualem Mengistu

This ICTD Research in Brief is a two-page summary of ICTD Working Paper 48 by Giulia Mascagni and Andualem Mengistu. This series is aimed at policy makers, tax administrators, fellow researchers and anyone else who is big on interest and short on time. This paper looks at the challenge faced by many low income countries of increasing tax revenue dramatically while minimising distortions…

Read more

Aid and Taxation in Ethiopia

by Giulia Mascagni

The relation between aid and taxation is largely contested in the literature. On the one hand, aid may act as a substitute for tax revenue and thus have a crowding-out effect. It can also have a detrimental effect on domestic tax institutions. On the other hand, it can promote and support tax mobilisation through policy…

Read more
March 2016

A Fiscal History of Ethiopia: Taxation and Aid Dependence 1960-2010

by Giulia Mascagni

This paper reviews the fiscal history of Ethiopia, focusing particularly on the period between 1960 and 2010, for which detailed fiscal data is available to underpin the analysis. While reviewing the key fiscal and economic events of this period, particular attention is paid to the relation between Ethiopia and its donors, which in fiscal terms…

Read more