Under Ethiopia Tax Systems Transformation Programme (TSTP), DFID and Government of Ethiopia (GoE) established a Tax Transformation Office (TTO) in the Ethiopian Customs and Revenue Authority (ERCA). This unit is designed to drive the institutional transformation of ERCA and implement tax policy reforms aimed at responsible and equitable increase of tax revenues in Ethiopia. The underlying objective of the programme is transforming Ethiopia’s tax system so that the GoE can fund more services for its population from its own revenues and become less dependent on aid, thereby harnessing the potential of the country’s booming economic growth.
We are assessing the performance of TSTP to hassess progress against various output pillars and provide technical inputs and recommendations. We assisted FCDO and GoE is revising the logframe, results indicators, KPIs, and annual progress review. We have also conducted programme assessment based on TADAT methodology to assess the tax administration reforms and capacity building. The assessment focusses on economic benefit analysis and distributional impacts of tax reforms in Ethiopia including, welfare gains through potential effects on GDP and employment.
