Economists
studying tax system in Ethiopia
Grant
allows Profs. Ali and Shifa to study impact of technology on taxation systems
Merima Ali
and Abdulaziz Shifa, both assistant professors of economics at the Maxwell
School, are studying the effects that technology upgrades have on the Ethiopian
tax system, funded by a recent grant from the International Center for Tax and
Development. The $110,000 grant was awarded to Ali and Shifa in collaboration
with the Chr. Michelsen Institute of Norway; the Syracuse
University-administered component is budgeted for $46,470. With those funds,
Ali and Shifa will analyze the recent proliferation of electronic sales
register machines (ESRMs) in Ethiopia and how they affect tax payment and
avoidance amongst Ethiopian business owners.
Typically, the taxation
infrastructure in developing nations such as Ethiopia lags behind modern
standards — one of the barriers such nations face in financing state-run
activities. Tax systems that lack in capacity allow many citizens and
businesses to underpay their taxes or avoid payment altogether. However, in recent
years, taxation agencies have begun to modernize by developing Electronic
Taxation Systems, in the form of ESRMs and other technologies; Ethiopian officials adopted this technology in
2008. With this grant, Ali and Shifa will study the implementation of ESRMs in
Ethiopia, specifically in how they mitigate tax avoidance, their effect on
other taxes, and if they help the government control over-taxation by the
government.
Merima Ali teaches The World Economy
at the Maxwell School. Her research interests lie in development, taxation, and
microeconomic analysis of small-scale industries. She received a PhD in development
economics from the Wageningen School of Social Science in the Netherlands.
Abdulaziz Shifa’s research interests lie in political economics, economic
growth, and development. He received a PhD from the Institute for International
Economic Studies at Stockholm University in Sweden. 10/26/15