Tax and Government Revenue: in Ethiopia

Abstract

This study investigated both theoretically and empirically economic impacts of tax and tax reform on government revenue growth in Ethiopia using time series data from the time of its inception 1974 to 2016. Both descriptive statistics and econometric tools of error correction model (ECM) to analyzing the long run and short run relationships on components of tax, tax reform and government revenue growth. The results show that tax revenue and tax reform variables of goods and service tax (GST), international trade tax (ITT) have positive and significant impacts on government revenue growth in the long run and short run analysis, whereas profit and income tax (IPT) and non-tax revenue (NTR) have positive impacts and insignificant on government revenue growth