Oromia Revenues Authority from Where to Where?

Before it has been organized at the authority level Oromia revenue authority used to collect tax and offer services to the public at the core process level being structured in the then Oromia Finance and economy bureau. The region in a holistic manner was mandated to collect revenue that the economy generates where power to do so has emanated from the constitution.

Hence it has been energetically inspired to collect tax revenue independently being warranted by the constitution to assist the socio economic development of the large public and transform the region. To achieve tax collection activities of the region and cover the budget allocated each year, it is paramount to introduce sovereign body. Henceforth, in 1997 Oromia Bureau of Revenue was empowered to assess, collect and administer the potential revenues the economy generates in the region so as to accelerate development, democracy and good governance undergoing in the region.

 

Initially the Bureau is confined to collect only state revenues though lately the regional government has endorsed proclamation 163/2000 that has authorized the revenue sector also to collect municipality revenue to further fasten the socio economic development of both rural and urban residents.

From time to time the revenue sector has progressed dramatically in collecting taxes so as to enhance development programs of the region. Even though, the potential revenue ought to be collected is not yet come true, evidences certainly assures that a magnificent change has been revealed in this regard. Accordingly, revenue collected the year 1990 was only 364 million and satisfactory progress hasn’t been visible during the ten consecutive years. During these typical period 70% of the revenue collected encompasses direct tax where other types of tax haven’t won attention.

The year 2002 was a memorable moment when Oromia Revenue Bureau has collected 1.58 billion birr which was thought to be immense at the time compared to aforementioned years. Since then enormous alterations have taken place in revenue sector enabling collection of  billions birr each year. After the bureau has been restructured and reorganized as regional revenue authority under proclamation number 175/2012 of Oromia national state Caffe to promote efficient and effective accomplishment of its mission, an intense change has come about than ever. As a result, competent and relevant tax officers with diverse discipline have been recruited toward modernizing and enabling the authority collect potential revenue and back the Growth and Transformation Plan aspired to transform the livelihood of the public.

Currently, for the successful accomplishment of its mission the Authority has identified five strategic themes. To create awareness among tax payers and the public at large, Tax payer education is acknowledged as a prime activity whereas Tax data administration toward modernizing revenue administration is also another principal sphere. Prosecution and seizure of properties of negligent tax payers as enforcement to tax compliance, maximizing human resource and institutional capacity and execution of effective tax revenue collection by the help of proficient audit and assessment functions are also mentioned.