Ethiopia’s Tax System: Structure, Performance, and Benchmarking
July 30, 2025
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This Selected Issues Paper reviews Ethiopia’s tax system, highlighting its persistently low tax-to-GDP ratio despite sustained economic growth. It benchmarks Ethiopia’s revenue performance against regional and structural peers, examines the structure and efficiency of major tax categories, and analyzes revenue responsiveness to the business cycle. Using stochastic frontier analysis, it estimates the country’s tax potential and identifies significant gaps.
Subject: Consumption taxes, Corporate income tax, Personal income tax, Revenue administration, Taxes, Value-added tax
Keywords: B. tax revenue structure, Benchmarking, CIT tax revenues, Consumption taxes, Corporate income tax, D. tax revenue elasticity, E. revenue potential, Ethiopia, Fiscal sustainability, Income tax, Personal income tax, Revenue mobilization, Stochastic frontier analysis, Sub-Saharan Africa, Tax efficiency, Tax policy, Tax potential, trade openness, Trade tax, Value-added tax
Pages:
24
Volume:
2025
DOI:
Issue:
108
Series:
Selected Issues Paper No. 2025/108
Stock No:
SIPEA2025108
ISBN:
9798229019255
ISSN:
2958-7875
