Ethiopia is turning to regional peers such as Kenya to guide its sweeping tax transformation plans as the country grapples with a sharp decline in domestic revenue collection.
According to a recent report on Ethiopia's tax-to-GDP ratio, the Ethiopian government has acknowledged that lessons from Kenya's tax policies and administration could help close the growing gap.
One of the proposed measures is the introduction of taxation on financial services, mobile money transactions, and airtime, areas where Kenya has already made significant progress.
The report pointed to Kenya's experience with excise duty on mobile money transfers as a model Ethiopia could adapt to broaden its tax base.
