The government of Ethiopia has obtained over $4.21 billion in tax and related revenues in the past six months, the sector’s top official disclosed on Wednesday.The figure has shown a 31.8 percent or over $1.06 billion Birr increase as compared to similar months last year, according to Ethiopia’s Ministry of Revenues report. The ministry, however, nearly missed its target tax for the first half of this Ethiopian fiscal year which began on July 8, 2022.

Tax authorities started the fiscal year in July 2022 with a plan to collect $4.27 billion during the first half of the year.

Revenues minister Aynalem Nigussie said the ministry managed to achieve 99 percent of the target for the period, collecting $4.21  Billion in taxes.

Tax officials have been able to outperform their revenue target from domestic tax but failed to hit the target for foreign trade taxes.

Aynalem said the ministry of Revenues achieved 100.6 percent of the $2.57 billion planned to collect from domestic taxes.

Accordingly, domestic direct taxes, which are the major source of tax revenue in Ethiopia, contributed more than $2.6 billion to the six-month tax collection.

The figure has increased by 31.7% or $ 625 million as compared to the same months last year, said the minister.

In the same period, taxes on foreign trade contributed $1.6 billion to the total revenue.