Customs Commission Tops Revenues Collection Target

The Ethiopian Customs Commission has marginally exceeded its revenue collection target for the 2025/26 fiscal year, driven by steady inflow from indirect taxes. The Commission, tasked with facilitating international trade, securing borders, and collecting duties and taxes, reported amassing 738.14 billion Birr in the past twelve months. Briefing reporters on ECC’s annual performance Friday, Commissioner Debele Kabeta (PhD) put the achievement at 100.22% of the 725.25 billion Birr target set for the June-ended fiscal year. The result reflects a 77.56% year-on-year growth or 322.4 billion Birr increase compared with the preceding 2024//25 fiscal year. Debela attributed the growth to ongoing reforms, and digitization streamlining customs processes, along with strengthened tax compliance measures. Indirect taxes, including customs duty and excise duty, remain the main generator of the Customs Commission’s revenues collections, per ECC. The commission also reported positive outcomes in its operations to clamp down on contrabands and illicit smuggling networks as part of its mandate of securing the nation’s border. Over the past twelve months, customs officers intercepted contraband goods worth 28.9 billion Birr in joint operations involving federal and regional security institutions. Illicit imports dominated the contraband catches, with their total value estimated at 27 billion Birr. The rest were 1.9 Billion Birr worth of illicit exports. Authorities also arrested 1,835 suspected smugglers for violating the country’s customs and other related laws. Overall, the commission reported preventing more than 380 billion Birr revenue losses that the country could incur due to illicit trade and contrabands. Authorities expect the improved performance of the commission tasked with facilitating trade and protecting the country’s borders following the recent overhauling of the customs rule. Lawmakers ratified the amendment to the previous customs law last month as part of the country’s push to comply with international trade rules and standards while negotiating entry into the World Trade Organization (WTO). The amended law grants the customs commission the power to seize vehicles used to transport illegal goods, while also offering relief to importers and exporters in the formal system. The Commission targets to collect one trillion Birr in annual revenue during 2026/27 fiscal year, from July to June, its chief Debela revealed during the press briefing.