የኢትዮጵያ ገቢዎችና ጉምሩክ ባለስልጣን
Ethiopian Revenues and Customs Authority
Pay your tax today for a better tomorrow
 
Revenue Web  
 
Main menu
  Customs
  Domestic Tax
  library
  Proclamation
  Regulation
  Directives
  Declaration Forms
  Duty Free and Investment
  Documentation
  AEO
  Business Community
  Ethiopian Diaspora

 
Vacancy [New]
.
Bid info
.
Tools
  Tax Calculation
  Search Hs Code
  Prevent Corruption
  Import/Export Information

 
Online Services
* Sales Registration Machine Report
 
* E-Tax
* Purchase Declaration

 
Poll
 
Please comment on our aboutus page

Excellent
V.Good
Good
Needs Improvement

 


 
. Untitled Document

Introduction

The Ethiopian Revenues and Customs Authority (ERCA) is the body responsible for collecting revenue from customs duties and domestic taxes. In addition to raising revenue, the ERCA is responsible to protect the society from adverse effects of smuggling. It seizes and takes legal action on the people and vehicles involved in the act of smuggling while it facilitates the legitimate movement of goods and people across the border. The ERCA traces its origin to July 7, 2008 as a result of the merger of the Ministry of Revenues, the Ethiopian Customs Authority and the Federal Inland Revenues into one giant organization.
The pre-merger study proposal

Background

According to article 3 of the proclamation No .587/2008, the Authority is looked upon as "an autonomous federal agency having its own legal personality". The Authority came into existence on 14 July 2008, by the merger of the Ministry of Revenue, Ethiopian Customs Authority and The Federal Inland Revenue Authority who formerly were responsible to raise revenue for the Federal government and to prevent contraband. Reasons for the merge of the foregoing administrations into a single autonomous Authority are varied and complex.
download More
Some of those reasons include:
  1. To provide the basis for modern tax and customs administrations
  2. To cut through the red tape or avoid unnecessary and redundant procedures that results delay and are considered cost-inefficient etc.
  3. To be much more effective and efficient in keeping and utilizing information, promoting law and order,resource utilization and service delivery
  4. To transform the efficiency of the revenue sector to a high level.
A long process of study called "Business Process Re-engineering" had taken place before any steps were taken to effect the merger of the foregoing administrations. The study was undertaken for a year and half beginning from November 2007 by teams of officials selected from within the administration.

The study has looked into the selected key business processes and has come across inefficient organizational structure and unnecessary complicated procedures that permitted insufficient service delivery. The study has also indicated that there was corruption within the administrations and that smuggling and tax evasion were serious problems. These problems have depressed the attempt of the foregoing administrations to be successful in achieving their objectives. Owing to the depressing problems that worked against efficiency, the former administration has failed to deliver efficient service to its customers such as importers, exporters, taxpayers, the federal government, the society etc. For instance, international trade participants (importers, exporters) were unable to deliver their goods to domestic and international market on time.

Every import or export goods and their documents must be processed through the former tax and customs administration and due to the inefficient procedures, these goods were subject to delay at exit or entry points of the former customs Authority. Owing to it, importers or exporters viewed the former customs procedure with disfavor or as an impediment that blocked the movement of international trade. The former tax and customs administration also has long been criticized for lack of efficient system to control tax evasion.

The administration had inefficient system to control taxpayers who fail to declare their actual income in order to reduce their tax bill and the federal government’s revenue. The former administration was also far behind in protecting investors from adverse effects of contraband. It was a daily occurrence to see contraband goods displayed on and being sold in the streets of major towns of the country. These and other myriad problems call for solutions or significant change and in response to them, the study team has made problem-solving proposal.
In its proposal, the team has suggested merger of the foregoing three administrations. The team could not see the necessity for three entities or administrations as long as their purposes are indistinguishable i.e. collecting tax for the government and preventing smuggling. The study team believes that it would be better if the three administrations merged, forming a single large powerful organization so that a base for modern and equitable tax and customs administration system, effective resource utilization and quick service delivery can be laid down. The merge was eventually put into effect with the knowledge, participation and approval of the employee and senior management members and taxpayers. The pre-merger project such as the pilot program, carried out for six months beginning from November 2008, has revealed that all the newly designed tax and customs procedures test have been carried out to everyone's satisfaction i.e. it was successful and has produced very beneficial effects to both the authority and its customers or stakeholders. Presently, the Authority is exercising the powers and duties that were granted to the Federal Inland Revenue Authority and the Customs Authority by other existing laws.

Objective of Authority

The ERCA has the following objectives:
  1. To establish modern revenue assessment and collection system; and provide customers with equitable, efficient and quality service,
  2. To cause taxpayers voluntarily discharge their tax obligations,
  3. To enforce tax and customs laws by preventing and controlling contraband as well as tax fraud and evasion,
  4. To collect timely and effectively tax revenues generated by the economy;
  5. To provide the necessary support to regions with a view to harmonizing federal and regional tax administration systems.

Vision, Mission and values

Vision - To be a leading, fair and modern Tax and Customs Administration in Africa by 2020 that will finance Government expenditure through domestic tax revenue collection.
Mission - ERCA will contribute to economic development and social welfare by developing a modern Tax and Customs Administration that employs professional and highly skilled staff who promote voluntary compliance amongst individuals and businesses, and take swift action against those who do not comply.
Values - ERCA will understand its customers and their needs, treat them with trust and respect and help them meet their obligations. We will act with integrity, transparency and professionalism, and enforce customs and tax related laws. We will work closely with stake holders and ensure the participation of women.

Business Drives

The key business drivers have been identified as follows:
  • Revenue collection
  • Reliable data and statistics
  • Trade facilitation
  • Process oriented management
  • Enforcement and security
  • Good governance

prvious   Page 1   Next

 
Site Map
If you have any comment on the web site, please contact the web master - ercawebadmin@revenue.gov.et or ercawebauthor@revenue.gov.et
© 2012 Ethiopian Revenues and Customs Authority. All right reserved.