The Ministry of Revenues has reportedly begun installing high-definition surveillance cameras in manufacturing facilities subject to excise duty, with a particular focus on breweries and bottling plants.
The federal government has allocated an estimated 300 million birr to fund this advanced technological infrastructure. Tax authorities have struggled for years with significant shortfalls in collecting anticipated revenues from high-demand excise goods.
Government estimates indicate that substantial revenue leakages stem from persistent information gaps, under-reporting, and widespread evasion. The new monitoring system aims to close these gaps by providing real-time, remote tracking of production processes, facility exit points, and freight transport.
This infrastructure grants the Ministry unhindered digital oversight directly on the factory floor. While excise taxes on items such as alcohol, tobacco, and soft drinks remain crucial revenue streams, officials acknowledge that administrative shortcomings and leakages continue to undermine collections.
To reverse this trend, the state is shifting from traditional auditing to automated, technology-driven compliance enforcement. Citing industry sources, Capital newspaper reported that technicians and regulatory experts have started installing advanced digital camera systems at critical points within major manufacturing facilities.
Additionally, Excise Stamp Management Directive No. 1004/2024 and Implementation Directive No. 1079/2025 mandate that manufacturers and importers affix unique identifiers to all excisable goods.
This system enables authorities to track production, importation, and distribution from the factory all the way to the end consumer. Experts link this enforcement drive to a broader national medium-term revenue strategy supported by the International Monetary Fund (IMF), as Ethiopia’s low tax-to-GDP ratio remains a primary driver of budget deficits and debt burdens.
The Ministry of Revenues reported collecting 1.518 trillion birr during the previous fiscal year, while targeting 48.8 billion birr specifically from excise taxes for the upcoming budget year.
Projected contributions include 18.49 billion birr from the beer sector, 9.6 billion birr from soft drinks, and 6.69 billion birr from tobacco products.
