FB pixel

Ethiopia’s integration of digital ID and tax system could yield many benefits, ICTD says

Ethiopia’s integration of digital ID and tax system could yield many benefits, ICTD says
 

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.

The Fayda integration was completed in December, with all taxpayer identification numbers (TINs) linked with the individual’s Fayda number. TIN registration already included biometrics collection, leading to the credential’s use for the delivery of other public services. Shifting the biometrics collection responsibility to the national ID system, with its support from international development partners, makes the system more affordable.

The changes could assist Ethiopian tax authorities in shifting to data-centric operations.

Misconceptions creating mistrust of the system could pose a barrier to adoption too high for the tax system to realize the potential benefits ICTD calls out, the report warns. The establishment of a strong data protection regime could help.

The Conversation considered the prospects for a similar move by Kenya last year.

Related Posts

Article Topics

 |   |   |   | 

Latest Biometrics News

 

UK startup raises $15M to build Europe’s sovereign alternative to biometric surveillance

A British start-up has raised millions for its biometric-alternative surveillance technology. Augur, a resilience technology startup, has raised $15 million…

 

NIST concept paper explores identity and authorization controls for AI agents

A draft concept paper released by the National Institute of Standards and Technology (NIST) asks industry and government stakeholders how…

 

Age assurance community sets new goals with standard published and use exploding

“Age Assurance Has Come of Age,” crows the Draft Summit Communiqué for the upcoming Global Age Assurance Standards Summit 2026….

 

‘Big Tech’ fears and confusion dominate dialogue over UK digital ID scheme

The UK government’s digital ID consultation has begun, its detailed plan for the process finally revealed, but all that is…

 

Bunnings introducing facial recognition to 42 New Zealand stores

Hardware and garden center chain Bunnings is introducing facial recognition technology (FRT) to its New Zealand stores to prevent serious…

 

Sweden to launch government eID in December 2026

Sweden has announced that its electronic identity (e-ID) will be launched on December 1st, 2026, giving both Swedish citizens and…

Comments

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Biometric Market Analysis and Buyer's Guides

DIGITAL ID for ALL NEWS

Featured Company

ID for ALL FEATURE REPORTS

BIOMETRICS WHITE PAPERS

BIOMETRICS EVENTS

EXPLAINING BIOMETRICS