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VOL. 11, ISSUE 3 (2025)
Simplification versus sustainability: Evaluating ethiopia’s 2019 vat reform and its effects on regional revenue
Authors
Dr. Bizuayehu Biazen Yizengaw
Abstract
This study explores the fiscal consequences of
Ethiopia’s 2019 Value-Added Tax (VAT) reform, which allowed quarterly return
filing for medium-sized taxpayers. Employing a Difference-in-Differences (DID)
framework using administrative tax data from the Amhara region, the research
assesses whether the procedural simplification affected overall VAT
collections. The findings reveal a statistically significant decline in VAT
payments among firms’ subject to the quarterly filing regime. This suggests
that administrative leniency, while easing taxpayer burden, can potentially
weaken compliance and undermine revenue performance if not accompanied by
strong enforcement mechanisms. The study contributes to the ongoing policy
debate on balancing tax simplification with revenue sustainability, especially
in the context of developing economies like Ethiopia.
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Pages:115-117
How to cite this article:
Dr. Bizuayehu Biazen Yizengaw "Simplification versus sustainability: Evaluating ethiopia’s 2019 vat reform and its effects on regional revenue". International Journal of Humanities and Social Science Research, Vol 11, Issue 3, 2025, Pages 115-117
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