Types Of Taxes In Ethiopia
In this Article, we look at the Ethiopian tax system, Types of Taxes in Ethiopia applicable to everyone. Tax is a compulsory payment made by an individual or a corporate establishment (legal entity) to the government. This payment is usually a small percentage of a total earning, made to assist the government in offsetting its expenditure or raise capital in order to carry out an agreed upon national project. In many countries, the refusal to pay, as well as tax evasion and resistance is a serious offense punishable by a huge fine, or jail time. In economic terms, tax is is a means of wealth transfer from households, and businesses to the commonwealth or government. Tax can be a good thing if the money is judiciously utilized such that capital projects and infrastructural development take place. Tax can be a bad thing if it is too high, and does not go towards the common good through infrastructure projects, through corruption, or a visionless government. The amount of money (percentage…
