The centre for tax analysis in developing countries

Overseas Development Institue Institue for Fiscal Studies

Our partnership in Ethiopia focuses on:

  • The provision of technical support on analysing key tax and benefit policy and administration issues;
  • The co-production of analytical tools and resources;
  • And the development of skills and capacity for tax policy analysis and design within the MoF.

The ultimate aims are to help increase revenues, improve the efficiency (both economic and administration) and equity of the tax system, and ensure measures align with Ethiopia’s objectives on economic development and poverty reduction.

We have worked closely with the MoF to establish research and policy priorities, map and source administrative and survey data, and assess and develop appropriate analytical tools.

We have already delivered a comprehensive review of the Value Added Tax (VAT) and Turnover Tax (ToT) systems; developed a tax and benefit microsimulation tool (ETHTAX) that has been used to evaluate policy design; provided training on tax design, and policy appraisal and costing; and supported the MoF in the design and development of their tax policy response to COVID-19.

Our ongoing work continues to focus on developing capacity, tools and resources that will further advance the MoF’s ability to effectively appraise, evaluate and monitor tax policy in Ethiopia.

Publication

2019/20 survey of the Ethiopian tax system

Over the last 15 years, the Ethiopian economy has registered growth of around 10.2% per year in real term...

Publication

The impact of COVID-19 on formal firms: evidence from Ethiopia

This note uses administrative tax data on firms to measure the direct impact of the COVID-19 containment and preventi...

News

TaxDev supports tax policy responses to COVID-19 in Ethiopia

Between March and June 2020, TaxDev researchers provided support to the Tax Policy Directorate (TPD...

News

TaxDev team delivers training in Addis Ababa

Tom Harris and David Phillips from the TaxDev team delivered two successful sets of training to par...

News

IFS researcher delivers skills training with civil servants from Ethiopia

India Keable-Elliott from the IFS's TaxDev recently delivered remote training on data management and analysis to part...

Publication

Business taxation in Ethiopia: Exploring administrative data to understand taxpayers’ responses to tax thresholds

Increasing tax revenues is a priority in low-income countries, where governments collect much less revenue as a share...

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