Import Taxes to Generate More Than Half of Federal Tax Revenue
The government projects that import taxes will account for over 50% of federal tax revenue for the 2026/27 fiscal year. Foreign trade duties are expected to significantly outperform domestic tax collections, highlighting a heavy reliance on imported goods to fund the budget.
Why it matters
This fiscal strategy underscores the country's dependence on international trade and consumption of imported goods to maintain government operations.
The federal government expects to collect nearly 786 billion birr from taxes and duties imposed on imported goods during the 2026/27 fiscal year, making foreign trade the largest source of federal tax revenue.
The government’s federal revenue budget shows that foreign trade taxes and duties are projected to contribute 785.9 billion birr, equivalent to about 53 percent of the total federal tax revenue target of 1.49 trillion birr.
The amount is higher than the combined 705.5 billion birr the government expects to collect from domestic direct and indirect taxes, underscoring the central role that imported goods continue to play in financing federal expenditure.
Foreign trade revenue will come from customs duties, excise tax, value-added tax and surtax imposed on imported products.
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