Economy
World Bank Releases Policy Study on Increasing Revenue in Developing Countries
Wazema · last week · Read the Full Story on Wazema
AI SUMMARY
The World Bank has released a policy study on increasing revenue in developing countries without burdening low-income citizens, noting Ethiopia's tax-to-GDP ratio is at a historic low of 7.5 percent.
- The World Bank released a policy study detailing how developing countries can increase revenue without burdening low-income citizens.
- Ethiopia's tax revenue as a share of Gross Domestic Product is at a historic low of 7.5 percent.
- Ethiopia's tax performance is significantly lower than the sub-Saharan African average of 13 percent, as well as regional peers like Kenya, Rwanda, and Uganda.
- Illicit trade, excessive tax exemptions, and structural weaknesses in tax collection are cited as the primary reasons for Ethiopia's low tax revenue.
- The World Bank categorized Ethiopia under the 'strengthening basic functions' stage in its assessment of structural administrative capacity.
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