Excise Tax Adviser

Job Description

KEY INFORMATION
Job Title: Excise Tax Adviser
Sector: Tax Reform – Public Financial Management
Position Type (full/part time): Part Time
Duration/Level of Effort (long/short term): 9 months, starting ASAP (up to a total of 120 days)
Position Location (e.g. city, country, remote): Based in Addis Ababa, Ethiopia in a hybrid context blending remote and in-office work


SUMMARY OF THE PROJECT
The Government of Ethiopia (GoE) has shown impressive economic growth and poverty reduction over the last decade. However, recent economic shocks caused by the global pandemic, international and domestic conflict threaten these gains, while Ethiopia’s fiscal situation restricts GoE’s capacity to act. Ethiopia’s tax revenue to GDP ratio is extremely low, possibly as low as 6.2% for FY22, which puts it amongst the lowest in Africa. Its declining trend is more problematic. Meanwhile, in its 2024 Medium Term Revenue Strategy, the GoE has set out 5.7% increment in the Tax/GDP ratio by the end of the 5th year (2027/28).

In this context, the Tax Transformation Programme (TTP) is supporting GoE to self-finance its development through increased and sustainable revenue collection. Specifically, it is supporting increased voluntary compliance and creating a tax environment that encourages business and investment. Since 2019 TTP has been supporting the GoE on a number of tax reform related ambitions and was scheduled to close in 2024. However, recognising the critical contribution the programme is making to GoE and critical aspects of the Homegrown Economic Reform Agenda, FCDO has chosen to extend the programme to 2026. During this extension period, TTP shall continue to bring together technical tax expertise in the form of embedded and trusted advisers, UK HMRC, and other development partners to support GoE to raise revenues sustainably to meet the multiple demands on public finances.

Excise tax in Ethiopia has been performing poorly, with revenue from excise tax being only 0.6 percent of GDP (2019), while in contrast the average collection by developing countries is around 2 percent. Moreover, the excise tax to GDP ratio was 1.2 percent of GDP in 2005/06 and dropped in succeeding years reaching 0.6%. In recent times, as a part of the tax reform program, in-depth analysis of the excise system has been carried out based on which a new Excise Tax Proclamation No.1186/2020 was approved and put into effect in 2020. Immediately after the implementation of the new Proclamation the collection from excise doubled compared to the previous year before the reform.


SUMMARY OF THE POSITION
The TTP intends to recruit an excise tax advisor to conduct an assessment of the overall approach to excise tax administration, and deliver meaningful reforms based on the priority needs. This will include, administrative manuals and procedures for monitoring and control and to build the capacity of excise tax management and officers. Looking into the institutional framework of excise tax, including staffing is also one of the key areas the Advisor will be expected to address. The ultimate outcome for the excise tax adviser, and this TTP component/stream, is to increase revenue take and mitigate the compliance burden on manufacturers of excisable goods.


KEY RESPONSIBILITIES
The major responsibilities of the Advisor include:

• Review the Workplan for excise tax administration improvement, support and amend the activities, outputs, milestones, and Key Performance Indicators (KPIs) and agree with the TTP Head.
• Assess the overall approach to excise tax administration, including but not limited to:
  • Identification and summarising administrative issues, including revenue stamps administration.
  • Identification of gaps in policy and processes
  • Identify and present feasible recommendations within the determined timeline, in agreement with the relevant Director, and support their implementation.
• Develop a manual for monitoring and supervising the implementation of excise stamps, and track and trace system procedures.
• Develop procedures for crafting input-output coefficients for industries engaged in producing excisable products.
• Make periodic consultations, as needed, with officials of the Ministry of Revenues, and regional revenue authorities. This will include receiving feedback on the progress of implementation , with the aim of increasing revenue take and mitigating the compliance burden on manufacturers of excisable goods.
• Undertake a capacity development needs analysis, considering the existing capacity levels of excise tax administration and trainings received in the past.
• Design excise tax administration training modules, including training of trainer’s courses, and present the highlights to the Director or other relevant official of MoR and Customs Commission to bring them on board, with the aim of ensuring future sustainability of excise tax administration.
• Draft a training schedule for excise tax officers and agree with the Director or other relevant official of the MoR and Customs Commission.
• At the start of each training administer pre-training tests to assess the level of existing capacity.
• By the end of each training administer post training tests and evaluate the level of capacity improvement achieved because of the training.
• Evaluate the pre-training and post training tests and measure the level of skills changes achieved because of the training delivered.
• Prepare a concise report on the training delivered and submit the training modules to the Training Directorate through the TTP.
• Coordinate with the IT/Data TTP Team on IT support which may enhance excise tax administration.
• Input into monthly/quarterly reports to FCDO and the GoE
• Attend and input into check-ins with the TTP team
• Perform similar work related to excise tax administration the TTP management may request.

Key deliverables of this assignment will include:

• A diagnosis report submitted on the overall approach to excise tax administration with recommendations.
• Summary of excise tax administration issues produced.
• Capacity building needs assessment report submitted.
• Training Modules prepared and submitted, including impact on:
  • Number of excise tax officers trained by gender.
  • Number of excise tax trainers trained by gender.
  • Number of officer hours of training delivered.
• Excise tax skills evaluation reports and training modules submitted for each training through the TTO management.

JOB REQUIREMENTS

• Degree in Economics or another related field
• Deep working knowledge and practical experience of issues pertaining to the administration of excise tax of at least 10 years.
• International experience in excise tax administration, including the administration of excise stamps and preparation of excise tax manuals, processes, and procedures.
• Effective interpersonal skills and ability to work in a team environment.
• Good analytical and quantitative skills with ability to produce technical and analytical reports on excise tax administration.
• Working knowledge and experience of technologies applied for monitoring excise stamps, with trace and track capabilities for monitoring excise stamps.
• The consultant with have excellent English skills (both written and verbal), as well as a good level of Amharic (desirable)

APPLICATION PROCESS
Candidates are encouraged to apply by May 21st 2024.

For your application to be considered, please upload your documents as followed: Candidate Last Name, First Name, date, Title of the Position.

Cowater International is an equal opportunity employer, basing employment on merit and qualifications as they relate to professional experience and position expectations. Cowater does not discriminate against any employee or applicant on the basis of race, religion, sex, gender identity, disability, age, or any other basis protected by law.
We thank all applicants, however only those shortlisted will be contacted.

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Founded in 1985, Cowater International is a leading global development consulting company. Headquartered in Ottawa and with corporate hubs in Auckland, Berlin, Brussels, Helsinki, London, Madrid, Manila, Nairobi, Singapore and Stockholm, Cowater International has successfully delivered a portfolio of over 2500 projects and assignments in more than 95 countries. We work with governments, private sector actors and communities implementing projects that support socio-economic development, institutional strengthening, environmental improvements and advance equal opportunities for all. We are a diverse and experienced team committed to building a better tomorrow for the people we serve. Our adaptive approach to management has led to our yearly award-winning work and recognition as one of Canada’s Best Managed Companies since 2017.

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