Ethiopia sets 9.62% tax-to-GDP target for 2026/27

President Taye outlined a 9.62 percent tax-to-GDP target for 2026/27 on October 6, 2026, alongside inflation and growth goals in the government’s new programme.

In short

  • President Taye outlined a 9.62 percent tax-to-GDP target for 2026/27 on October 6, 2026, alongside inflation and growth goals in the government’s new programme.
New Government Targets 9.62 percent Tax-to-GDP Ratio amid Structural Economic Reforms
New Government Targets 9.62 percent Tax-to-GDP Ratio amid Structural Economic Reforms

Ethiopia’s government has set a tax-to-GDP target of 9.62 percent for the 2026/27 fiscal year, President Taye Atske-Selassie told a joint session of the country’s two parliamentary houses on October 6, 2026, according to The Reporter.

The target puts domestic revenue collection among the administration’s economic priorities at the start of its new term. Taye said the government would modernize the tax system alongside efforts to manage debt, spending and revenue, the newspaper reported.

The tax-to-GDP ratio measures tax receipts against the size of the economy. A higher target signals an effort to collect a larger share of economic output through the tax system; it does not, by itself, establish a new tax rate or change an individual taxpayer’s obligations.

Taye also outlined a goal of bringing inflation into single digits during the fiscal year, according to The Reporter. These are government objectives rather than confirmed economic outcomes.

Fana Media Corporation’s separate report from the October 6 address described a 10.1 percent economic growth target for the same fiscal year, identified in that report as 2019 in the Ethiopian calendar.

The revenue and growth goals form part of the programme presented to the House of Peoples’ Representatives and the House of Federation. The reports cited here do not provide a detailed timetable for implementing the tax-system changes or establish that the targets have been achieved.