Integrating Ethiopia’s national ID Fayda with its tax system could improve the quality of tax data, taxpayer experience, and compliance monitoring and enforcement while broadening the country’s tax base, according to an independent analysis.
The International Centre for Tax & Development (ICTD) has identified five potential benefits to Ethiopia is based on a recent analysis of tax reforms in Uganda and Ghana, published by the Institute of Development Studies. Both countries integrated their national digital ID with their tax systems as part of broader digitization initiatives, which have had early success. Nigeria’s President has also been discussing an integration between the country’s national ID and taxation systems.
