Public Outreach Program 

Ethiopia Property Tax Modernization

Names here
Summary
Contents

 Introduction

 Audience

 Message

 Delivery Process

 Evaluation

 Conclusion
Evaluation Program

In the context of the Ethiopian Tax Reform, we define the

evaluation program as a process to ensure that the tax
collection and the tax spending process is being done in the
most efficient and law-abiding way while maximizing the
people’s confidence and support to the tax program.
 Evaluation Program

Tax Collection Tax Spending

Evaluation Evaluation
 Tax Collection Evaluation

Accommodating and
Strengthening the Tax Ensuring the Legality of Responding to the Public
Collection Practice the Tax Collection Practice Input Regarding Tax
Collection Practice
Mechanism to Assess the Performance of the
Tax Officer

Main goal of performance assessment function:

 To ensure that the local tax offices could collect the targeted
amount of tax collected
 To ensure that the tax officer provide the best service for the
taxpayer when the taxpayer is paying their tax
 Mechanism to Audit the Tax Collection
Practice

Main goal of the Tax Collection Audit:

 To ensure that the tax collection practice is in line with the
existing laws and regulations
 To conduct initial investigation in the event of possible breach
of tax laws and regulations
 Performance Assessment and Audit Mechanism for
Tax Collection Process

When combined, the performance assessment mechanism and the

audit mechanism should:
 Maximize the ratio of actual tax collected to target tax
collected
 Maximize taxpayer’s satisfaction in the tax collection process

 Ensure that the tax collection practice is carried out in a way

that abide all tax laws and regulations
 Mechanism to Accommodate and Respond to Public
Input on the Tax Collection Process

The main goals of the mechanism are:

 To learn about people’s preference or concern regarding the tax
collecting process
 To provide a place where people could ask question regarding the tax
program
 To provide channel where the people and the tax office can have
“dialogue” regarding the tax collection process
 To provide input for future adjustment in tax assessment or tax
collection mechanism
 Tax Spending Evaluation

Accommodating and
Ensuring the Legality of the Responding to the Public
Tax Spending Process Input Regarding How to
Spend the Tax Money
 Mechanism to Audit the Tax Spending
Process

Main Goal of the Tax Spending Audit:

 To ensure that the budgeting process is in line with the existing
regulation
 To ensure that the implementation of a project that is financed
using tax money is in line with the existing procedure
 To conduct initial investigation in the event of possible breach of
laws and regulations
 Mechanism to Audit the Tax Spending
Process

 The tax spending audit function in local level is analogous to the

function that is run by the Ethiopian Office of the Federal
Auditor General in the federal level
 If working properly, the audit mechanism could increase local
government’s accountability, which might further increase local
support for the local government’s project
 Mechanism to Accommodate and Respond to
Public Input on the Tax Spending Process

The main goals of the mechanism are:

 To learn about people’s preference or concern regarding the tax
spending process
 To process public input regarding tax spending process
accordingly
 To provide channel where the people and the local government
can have “dialogue” regarding how to spend the tax revenue
 Institutional Aspect of the Evaluation Program

Optimum institutional structure for each evaluation program

depends on:
 Capability of the local human resources

 Dynamics of the local institutional politics

 Institutional Aspect of the Evaluation Program

The ideal institutional design for each mechanism should ensure that the
resulting institution is:
 Incentivized to carry out the mechanism in an objective manner without
any conflict of interest
 Incentivized and capable to carry out the respective mechanism as
instructed in the respective law and regulation
 Accepted by most stakeholders without creating strong opposition from
a particular stakeholder
 Efficient in administrative, bureaucratic, and cost perspective