Tax System Transformation Programme

The Tax Systems Transformation Programme (TSTP) is a five-year long programme funded by the UK’s Department for International Development (DFID) to support the GoE in achieving its domestic revenue objectives through technical assistance and a delivery approach. The overall objective of TSTP is to assist the Government of Ethiopia (GoE) in raising tax revenues towards 17.2% of GDP in a responsible and equitable manner. The UK and GoE have already invested in the establishment of the Tax Transformation Office (TTO), intended to drive accelerated delivery of tax transformation. TSTP has three linked outcomes: 1. An equitable and business friendly tax environment 2. Improved voluntary compliance 3. Increased GoE revenues To meet these outcomes, TSTP will develop working relationships with the programme’s key beneficiaries: MoFEC (and in particular, the Tax Policy Directorate), the MoR and Customs Commission, as well as the Prime Minister’s Office (in particular, the Policy Performance Unit). TSTP’s role is to support the capacity needs of these beneficiaries and work with other technical assistance providers that DFID funds, such as the TTO, to do this effectively. TSTP has assumed the responsibility of the management of the TTO located within the MoR. TSTP forms part of a broader initiative to build the capacity of key beneficiaries. The scope of TSTP will cover all areas related to revenue policy and administration in Ethiopia, including domestic tax and Customs.