Summary Of Ethiopia 2022/2023 First Quarter Revenue By Component

The overall Federal government revenue in 2022/2023 was Birr 97.8 billion which was fully collected from domestic sources. Tax revenue accounted for about Birr 91.3 billion or 93.3 percent of domestic revenue and the remaining Birr 6.6 billion or 6.7 percent was generated from non-taxes.

No grant and relief was received during the review quarter. Indirect tax exhibited a 27.7 percent quarterly growth while direct tax revenue rose by 46.7 percent compared to last year the same period.

In the 2021/22 fiscal year, the total income tax collection amounted to 16,889.50 million Birr, with personal income taxes contributing 5,351.70 million Birr and business income taxes contributing 11,537.80 million Birr. These figures increased in the fourth quarter to 22,190.10 million Birr for total income tax, with personal income taxes reaching 5,775.10 million Birr and business income taxes reaching 16,415.00 million Birr.

Looking ahead to the 2022/23 budget, the government projected a substantial rise in income tax revenue, setting a target of 104,909.30 million Birr. However, in the first quarter of the new fiscal year, the actual income tax collection fell short of expectations, amounting to 24,833.20 million Birr. Additionally, the collection of other taxes, such as indirect taxes, totaled 2,835.20 million Birr in 2021/22 Q1 and increased to 4,331.10 million Birr in Q4. The budget for 2022/23 projected a further increase to 19,865.90 million Birr, but the actual collection in Q1 was 4,111.40 million Birr.

In summary, the data indicates fluctuations in tax revenue collections, with notable increases in the later part of the 2021/22 fiscal year. However, in the first quarter of the 2022/23 fiscal year, the actual collections fell short of the ambitious targets set in the budget. It suggests that meeting the projected revenue targets may require closer examination and potential adjustments in the government's tax policies and collection strategies to ensure the desired outcomes.

In the domestic tax category, revenues increased from 18,876.20 million Birr in the fourth quarter of 2021/22 to 24,223.70 million Birr in the first quarter of 2022/23. However, the budget allocation for 2022/23 is notably higher at 103,363.90 million Birr. This suggests a significant emphasis on domestic tax collection in the coming year.

Similarly, foreign trade taxes and import taxes also saw growth. Foreign trade taxes rose from 29,969.40 million Birr in the fourth quarter of 2021/22 to 34,615.80 million Birr in the first quarter of 2022/23. The budget allocation for foreign trade taxes and import taxes for 2022/23 stands at 172,104.90 million Birr, which indicates a substantial focus on revenue generation from foreign trade.

Indirect tax revenue, which encompasses various taxes such as value-added tax (VAT) and excise tax, showed a considerable increase from 48,845.50 million Birr in the fourth quarter of 2021/22 to 62,369.50 million Birr in the first quarter of 2022/23. The budget for indirect tax revenue in the 2022/23 fiscal year is set at 275,468.80 million Birr, highlighting the government's intent to prioritize this revenue stream.

In summary, the table reflects a positive revenue trend across all categories, indicating an overall growth in tax collection. The government's budget allocation for the 2022/23 fiscal year suggests a focus on domestic tax, foreign trade taxes, import taxes, and indirect tax revenue, indicating the importance placed on these revenue sources to fund public expenditure and drive economic growth.

On the non-tax revenue side, there was a steady increase in the first quarter of 2022/23 compared to the previous fiscal year, with a notable budget allocation for the entire 2022/23 fiscal year. However, specific figures for privatization, as well as grants and relief funds, are null, making it difficult to assess their contributions based on the given data.

The graph provides data on government revenue for different periods, including direct tax revenue, indirect tax revenue, non-tax revenue, and the overall total government revenue.

In terms of tax revenue, both direct and indirect tax revenues showed a consistent upward trend. Direct tax revenue increased from 19,724.7 million Birr in the first quarter of 2021/22 to 26,521.2 million Birr in the fourth quarter. The budget allocation for 2022/23 indicates a significant increase to 124,775.1 million Birr, with 28,944.5 million Birr generated in the first quarter of that year. Indirect tax revenue also saw growth, rising from 48,845.5 million Birr in the first quarter of 2021/22 to 58,839.5 million Birr in the fourth quarter. The budget allocation for 2022/23 stands at 275,468.8 million Birr, with 62,369.5 million Birr generated in the first quarter

Non-tax revenue experienced a similar upward trend, increasing from 4,428.4 million Birr in the first quarter of 2021/22 to 8,027.7 million Birr in the fourth quarter. The budget allocation for 2022/23 is 38,607.4 million Birr, with 6,572.4 million Birr generated in the first quarter.

Overall, the total government revenue, combining both tax and non-tax sources, displayed a positive growth pattern. It rose from 72,998.6 million Birr in the first quarter of 2021/22 to 93,388.4 million Birr in the fourth quarter. The budget allocation for 2022/23 is set at 438,851.3 million Birr, with 97,886.4 million Birr generated in the first quarter. These figures suggest an optimistic outlook for government revenue and reflect efforts to diversify revenue streams through both taxes and non-tax sources.

Source: Ministry of Finance