authority and duties

Objective of Authority

The ERCA has the following objectives:

• -To establish modern revenue assessment and collection system; and provide customers with equitable, efficient and quality service,

• -To cause taxpayers voluntarily discharge their tax obligations,

• -To enforce tax and customs laws by preventing and controlling contraband as well as tax fraud and evasion,

• -To collect timely and effectively tax revenues generated by the economy;

• -To provide the necessary support to regions with a view to harmonizing federal and regional tax administration systems.

Power and Duties of Authority

The ERCA shall have the powers and duties to:

establish and implement modern revenue assessment and collection system;
provide, based on rules of transparency and accountability, efficient, equitable and quality service within the sector; properly enforce incentives of tax exemptions given to investors and ensure that such incentives are used for the intended purposes;
implement awareness creation programs to promote a culture of voluntary compliance of taxpayers in the discharge of their tax obligations;
carry out valuation of goods for the purpose of tax assessment and determine and collect the taxes;
conduct study and research activities with greater emphasis to improve the enforcement of customs and tax laws, regulations and directives and the collection of other revenues; and based on the result of the study and research initiate laws and policies and implement the same up on approval;
collect and analyze information necessary for the control of import and export goods and the assessment and determination of taxes; compile statistical data on criminal offences relating to the sector, and disseminate the information to others as may be necessary;
organize a training center wherein to build employees' capacity; and design appropriate training schemes;
examine goods and means of transport entering into or departing from Ethiopia through customs ports, frontier posts and other customs stations, and ensure that customs formalities are complied with;
provide information and appropriate support to the Federal Police in the control of illicit trafficking of goods and combating contraband; and cause appropriate actions be taken in accordance with the law;
investigate customs and tax offences, institute and follow up criminal proceedings in courts; for the discharge of such responsibilities, organize its own prosecution and investigation units and supervise their performance ;
inspect and seize documents under the possession of any person that are required for the enforcement of customs and tax laws; organize and operate modern laboratory inspection of goods and documents;
decide the place where import and export goods are to be deposited; establish warehouses, issue warehouse licenses; supervise duty-free shops; control the handling and care of deposited goods; suspend or revoke warehouse licenses; collect license and service charges;
delegate, fully or partially, its powers of investigation, prosecution, prevention and control of customs and tax offences as well as tax assessment, collection and execution powers to justice departments and revenue collecting agencies of regional states; and provide the necessary support for and follow up its implementation;
oversee and supervise the activities of the National Lottery Administration;
provide appropriate capacity building support to regional revenue collecting agencies with a view to harmonizing federal and regional tax administration systems;
enter into contracts and international agreements regarding tax and customs administration;
exercise the powers and duties that were granted to the Federal Inland Revenue Authority and the Customs Authority by other existing laws;
own property, enter into contracts, sue and be sued in its own name;
perform such other related activities as required for the attainment of its objectives.