New Government Targets 9.62% Tax-to-GDP Ratio Amid Economic Reforms

Ethiopia’s newly sworn-in government led by Prime Minister Abiy Ahmed (PhD) has announced plans to raise the country’s tax-to-GDP ratio to 9.62 percent by the 2026/27 fiscal year. Domestic revenue mobilization has been placed at the center of the administration's national economic agenda as the Prime Minister begins a new term. The strategic economic target was officially announced by President Taye Atske Selassie on Tuesday during the opening of a joint session of the seventh House of Peoples’ Representatives (HPR) and the House of Federation. The ambitious revenue enhancement target comes as the country undergoes broader structural economic reforms. Under these policy directions, the government seeks to strengthen its fiscal capacity by capturing a larger share of economic output through tax collection. Expanding the tax base and improving revenue administration are expected to play pivotal roles in meeting the 2026/27 financial benchmark.