Environmental Taxation practice and Revenue performance in Ethiopia

Abstract

The study focuses on investigating the environmental taxation practices and their revenue performance in Ethiopia. It adopts a mixed methods research approach to address the broad objective through answering research questions and specifically, it uses quantitative (surveys of structured review of documents), in-depth interview together with documentary analysis. The study statistically analyzes the data elicited from documents. It also supports the result from survey by the results from in-depth interviews and document studies. The results of this study reveal that there is no explicit environmental tax in Ethiopia but there exist environmental tax bases which categorise these taxes as environmental tax. The result also identifies that these tax has revenue contribution for the country also it identifies the percentage of these taxes to the total revenue as well as tax revenue is high. And that there are various activities in Ethiopia in which this taxes could be introduced. Moreover, the result identifies the tax can be used as a source of fund for environmentally beneficiary projects. As a whole, the study suggests that laws need further guiding principle and manuals; strict implementation of prior laws like environmental impact assessment is needed also a series of measures which could be taken by the government policy makers and regulators