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Ethiopia’s tax ratio remains among Africa’s lowest despite reforms – IMF

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Ethiopia’s tax ratio remains among Africa’s lowest despite reforms

Ethiopia moves to ease tax burden on workers amid high inflation

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An image reflecting Ethiopia's government new tax threshold proposal

Ethiopia’s tax revenue remains one of the lowest in Africa, hovering at just 8% of GDP in 2025 despite a raft of reforms backed by the IMF.

Ethiopia’s formal sector employees may soon enjoy a lighter tax burden, as the government moves to raise the tax-free threshold and adjust the top tax bracket to reflect inflation, and exchange pressures.

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Ethiopia’s tax ratio remains among Africa’s lowest despite reforms – IMF

Ethiopia’s tax ratio remains among Africa’s lowest despite reforms – IMF

Ethiopia’s efforts to boost domestic revenue are falling short and according to the IMF’s latest country report, the nation’s tax-to-GDP ratio remains stuck at 8%—well below both regional and global benchmarks

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Ethiopia moves to ease tax burden on workers amid high inflation

Ethiopia moves to ease tax burden on workers amid high inflation

Ethiopia’s new income tax proposal promises relief for workers through higher thresholds, but raises key questions about its ripple effects on business taxes and government revenue

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Ethiopia’s tax revenue remains one of the lowest in Africa, hovering at just 8% of GDP in 2025 despite a raft of reforms backed by the IMF.

Ethiopia’s formal sector employees may soon enjoy a lighter tax burden, as the government moves to raise the tax-free threshold and adjust the top tax bracket to reflect inflation, and exchange pressures.

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