The centre for tax analysis in developing countries

Overseas Development Institue Institue for Fiscal Studies

Our partnership in Ethiopia focuses on:

  • The provision of technical support on analysing key tax and benefit policy and administration issues;
  • The co-production of analytical tools and resources;
  • And the development of skills and capacity for tax policy analysis and design within the MoF.

The ultimate aims are to help increase revenues, improve the efficiency (both economic and administration) and equity of the tax system, and ensure measures align with Ethiopia’s objectives on economic development and poverty reduction.

We have worked closely with the MoF to establish research and policy priorities, map and source administrative and survey data, and assess and develop appropriate analytical tools.

We have already delivered a comprehensive review of the Value Added Tax (VAT) and Turnover Tax (ToT) systems; developed a tax and benefit microsimulation tool (ETHTAX) that has been used to evaluate policy design; provided training on tax design, and policy appraisal and costing; and supported the MoF in the design and development of their tax policy response to COVID-19.

Our ongoing work continues to focus on developing capacity, tools and resources that will further advance the MoF’s ability to effectively appraise, evaluate and monitor tax policy in Ethiopia.


Ethiopia publishes its second tax expenditure report for FY 2018/19 to FY 2020/21

The Ethiopian Ministry of Finance (MoF) has published its second tax expenditure report covering customs duty and imp...


Effective tax rates and firm size: the case of Ethiopia

Do some firms pay more corporate taxes than others?...


What is the case for carbon taxes in developing countries?

Carbon pricing will be one of the most talked about policy options at COP26....


TaxDev delivers tax policy appraisal and costing training in Ethiopia and Ghana

In October 2021, TaxDev researchers delivered a series of workshops with analytical staff from the Ministeries of Fin...


A survey of the Ethiopian tax system

Over the last 15 years, the Ethiopian economy has registered growth of around 10.2% per year in real term...


The impact of COVID-19 on formal firms: evidence from Ethiopia

This note uses administrative tax data on firms to measure the direct impact of the COVID-19 containment and preventi...

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