The Effects of COVID-19 on Tax Administration in Ethiopia

Abstract

The role of effective tax administration is vital to safeguard healthy business environment and
promote economic growth. Ethiopian tax administration practice has shown improvement for
the last five years, though it has started to be challenged due to COVID-19 outbreak. The aim of
this study is to examine the effect of the pandemic on tax administration in Ethiopia. The
researchers have made desk review using data gathered from websites, published articles,
reports, and press conference release. The study result showed that before the pandemic, the
country’s tax administration has shown good progress in the past few years. If the pandemic is to
stay for a long time, it has the probable effect of affecting over all public finance structure and
well-being of the economy. To minimize these negative probable effects of the pandemic, the
government should take appropriate measures such as improving cash-flow for business
organizations and re-assess its medium- to longer-term fiscal strategies.