For the past seventeen years, the Value Added Tax system has been implemented in Ethiopia. However, in line with the current economic development norm, it is not conducive to making company and leadership effective. Therefore, while preparations are being made to replace the current proclamation with a fresh research, the Value Added Tax Amendment provisions have been lately accepted as the research is unlikely to be short-lived and due to the instant modifications.
The tax reforms introduced by the government are of great importance to the taxpayer and the tax collector, according to Daniel Johannes, founder and owner of Cloud World Wide Company. Transactions with public departments and development organizations have decreased the buyer’s tax on 100% VAT, and for many of us the refund scheme can assist to decrease the capital shortage. We used to think the government wouldn’t want to put cash in our hands in the past. But now that the proclamation is coming into effect, we expect these issues to be solved. The tax notification period has been expanded, enabling us to spend more time and attention on our key company, not only in terms of price, but also in addressing the difficulties we face.
While these reforms should be prioritized by the government, it continues to be done to prevent other issues found in the industry. It is almost impossible to think that there are enough tax collection centers.Network loss becomes a permanent problem in in most collection centers. Every time we go there is no network at our disposal, or the customer’s reaction to the disturbance is inadequate. It should not be put forward as a reason. Instead, the organization is responsible for understanding the problem’s seriousness and developing an alternative strategy. Daniel, who says the government should address the problem of increasing taxes collective centers and the need to impose a tax on fundamental requirements and consumption, emphasizes in particular that the government should review the 15% VAT tax on food and associated products.
Furthermore, the taxpayer should also be conscious of the procurement and sales process by setting up a scheme that enables the employer, company proprietor to coordinate and monitor the business’ day-to-day activities. Sometimes we have to go to the Revenue office to verify that the records we get from the vendor are right when we go to purchase products. If we create a coherent scheme, we can check it online and make the purchase.
The state is conscious of all businesses along the manner and prevents the crowdfunding job performed during tax breaks alone. This will assist decrease the likelihood of corruption and fraudulent association. They claim the system can help figure out where goods are on the market and save the client from repeated job.
According to the Director of Tax Promotion at the Ministry of Revenue, Ms Abaynesh Abate, there will be gaps in the process as the declaration has been around for years, so there is work to be accomplished by reviewing everything. Despite this, only the three priorities were recognized by the present reforms. One of these was the one-month deadline set in the previous system by all tax payers for all levels. This strategy has been discovered to reduce the taxpayer’s tax reporting costs and cause congestion for the tax collection agency to obtain additional hours of office each month