Ethiopia’s Revenues Authority has lifted tax penalties totalling more than 500 million birr for over 260 taxpayers, following a review of administrative decisions that had been contested for procedural errors, Ahadu Radio reported.

The authority said the move forms part of broader reforms to modernise tax administration, resolve complaints efficiently, and prevent similar disputes. Twenty four new operational and technology-driven systems have been introduced to streamline complaint handling and oversight.

The penalties mainly involved cases where sanctions were imposed through flawed administrative decisions. The authority said it will continue to prioritise consultation and dialogue with taxpayers alongside enforcement to strengthen compliance.

The announcement comes amid wider efforts to modernise Ethiopia’s tax system. Minister of Revenues Aynalem Nigussie told the Ethiopia “Finance Summit” on Thursday that over the past decade the government has strengthened institutional capacity, introduced digital tax administration, ensured compliance with tax law, and worked to secure sustainable revenue growth.

Since 2019, the share of taxpayers filing electronically has risen from 10.1 percent to 94 percent by 2025, while electronic payments grew from 11 percent to 64 percent. In the first six months of the curreny fiscal year, the authority collected 709 billion birr, compared with 256 billion birr in the same period the previous year, putting full-year revenue on track to reach 2.1 trillion birr.