Ethiopia is set to adopt Kenya's tax strategies, including taxing financial services and mobile money, to boost its dwindling revenue. This move aims to address Ethiopia's sharp decline in its tax-to-GDP ratio, which plummeted from 12.1% in 2015/16 to just 7.5% in 2022/23.

• Ethiopia plans to introduce taxation on financial services, mobile money transactions, and airtime, mirroring Kenya’s successful excise duty on mobile money.
• The Ethiopian government is considering increasing its VAT rate from 15% to 17.5% to align with regional standards.
• Kenya Revenue Authority’s (KRA) digital systems, particularly the iTax platform, are highlighted as a benchmark for improving tax compliance and expanding the tax net in Ethiopia.