Ethiopia Moves To Electronic Tax Payments

Ethiopia is transitioning to electronic tax payments, with citizens in the capital beginning to make payments using an electronic payment order system that has replaced the former paper-based system. 

Commercial banks in Addis Ababa are now required to offer electronic payment order service. Payments are then transferred to Minister accounts according to the type of tax they represent, with separate accounts for private income tax, pension tax, and federal taxes.

Upon deposit taxpayers are provided with a receipt to take to the tax authority in order to clear the paperwork for the settlement. It is hoped that the new system will reduce delays.

An e-payment service between the Commercial Bank of Ethiopia and 11 state enterprises is also currently under trial through which taxpayers can pay their taxes using internet banking.