Statement or nominated in accordance with section 15

Statement
of Research Problem                      

The Ethiopian Revenue and Custom
Authority (ERCA) is a body responsible for collecting revenue from customs
duties and domestic taxes. ERCA was established proclamation No.587/2008 on
July2008, by the merger of the ministry of Revenue, Ethiopian Customs Authority
and the Federal Inland Revenue Authority. 
It established for the purpose of enhancing the mobilization of government
revenues, while providing effective tax and customs administration and
sustainability in revenue collection.

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A Wolayita zone
revenue authority has 12 rural District and 3 Town
administrations. These
District/ Town administrations are vested on the management members who are
either enacted or nominated in accordance with section 15 of the Act. The day
to day running of the affairs is on the District/ Town administrations. It is a political, economic and cultural
center of Zone with a population of which accounts about 1,966,404 of total
population and 4.8% of the total population of the country. Its revenue
collection as compared to the national average is relatively low.

According to annual revenue collection is about Birr
255,011, 425.393.26, 345,773.55,
451,704,971.12, 417,583,199.16,
451,937,899.31
million in 2005, 2006, 2007, 2008 and 2009
(EFY) respectively. Revenue Enhancement Plan is a commitment of the revenue
administration to optimizing the revenue sources that are legally and
administratively available. The intent is to use each source of revenue to its
fullest potential in accordance with the wider goals and priorities of the
country. Revenue collection involves exploring opportunities to diversify
revenue sources when existing revenues are inadequate to meet the demands of
the citizens. Finally, it means making a commitment to putting in place a
wide-ranging series of improvements to its policies, procedures, staffing and
organizational structure.

Insufficient revenue to finance improvements in service
delivery, and provide new and better infrastructure, and facilities is the core
problem that is identified by the Revenue Enhancement Plan document. The main
causes for the core problem are diverse and complex. Some of them are: i)
revenue collecting institutional and HR related problems; ii) Too little
external financing; iii) Poor management of own source revenues i.e. inadequate
tax assessment and auditing, low municipality revenue, uneconomic tariffs,
charges and fees, inappropriate accounting system, poor enforcement, and weak
debt collection ; iv) Weak customer relations that is manifested by negative
attitudes of customers, inadequate 
awareness  of  residents 
and tax payers; v) Ineffective 
data  management and
unavailability of appropriate data, unreliable and incorrect data, inability to
use data effectively, poor integration of data bases and inter-linkages between
agencies, and irregular updating of data; and vi) inappropriate valuation of
land, non-recovery of major capital investments.

To mitigate the above core problems, the Revenue
collection and administration sets its goal as to “diverse and increasing
financial resources, and improve authorities efficiency and accountability to support the
sustained growth of  Wolaita zone revenue authorities  Administration to become  with infrastructure and service delivery
equivalent to those in zones of middle income countries.