The Addis Ababa City Administration Revenues Bureau announced that the annual tax expected from Grade B taxpayers is significantly minimal compared to the income tax paid by salaried employees in government and private organizations.
The bureau made this announcement during a press briefing held for media institutions regarding Grade B taxpayers.
The administration’s revenues bureau detailed that this low tax rate was determined based on its firm commitment to encourage taxpayers engaged in small-scale businesses, prevent tax burdens, and enhance their profitability to transition them to the next level.
There are 456,433 Grade B taxpayers engaged in various businesses, rental, and ride-hailing sectors across the city, from whom a total of 9.2 billion birr is planned to be collected.
Providing clarification regarding calls and payment deadlines issued to users, a call was made for taxpayers who received messages by July 25 to fulfill their tax obligations online by July 30, 2018, to protect themselves from penalties and interest.
It was stated that individuals who have not received text messages or received them after July 25 will not be penalized and can pay their annual tax until August 20, 2018. Taxpayers who have not yet received messages were also advised to wait patiently where they are.
Meanwhile, an appeal mechanism has been put in place for any taxpayer lodging complaints over heavy taxation, it was learned.
Accordingly, a system has been arranged where complaints are accepted at the woreda level and a reassessment is conducted through daily income assessors organized at the sub-city level.
It was indicated during the press briefing that the annual tax amount sent via text to Grade B taxpayers was prepared by deducting the monetary amounts they paid in advance tax.
It was noted that extensive efforts have been carried out over the past two years to establish a fair tax collection system, ensure good governance, and eliminate corruption and malpractices.
Furthermore, it was stated that the majority of Grade B taxpayers have completed their payments through the established online payment system, while the rest are continuing to pay.
For the upcoming 2019 fiscal year, plans are underway to equitably collect 502.27 billion birr as a city, and 380 billion birr through the revenues bureau.
