|
Eritrea taxes are considered as an important part of Eritrea economy and business. Eritrea is mainly dependent on indirect taxes. The indirect taxes in Eritrea are generally non-distributive. But the indirect taxes are comparatively easier to collect than the direct ones.
According to official sources, in 1997, the rate of tax collection in Eritrea had increased up to 20%, however, in 2000, it again came down to 16.5 % due to some political crisis. Measures have been taken by concerned authority to raise the tax collection in coming years. The Government in Eritrea has decided to carry out the process of privatization. It has been also decided to sell the public properties still maintained by the government.
The tax system in Eritrea, implemented by the Government of the country, has reduced the tax rates on capital goods and raw materials. The tax system in Eritrea looks forward to better utilization of resources in the country. Eritrea taxes are applicable to any amount of income earned from any sources. Certain modifications have been made in both business and personal taxes. In case of Sales tax and custom duties alteration have been made to make their structure more simple and streamlined.
A proper tax system in Eritrea is required to collect taxes in a more efficient and organized way. It will also raise the amount of total tax collection from the country.
|
