HAWASSA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE
Public Finance Term Paper Do in group of four students

1. Define federalism and discuss how Ethiopian federalism is created?

2. Discuss the constitutional distribution of expenditure responsibilities between federal and
regional government in Ethiopia.
3. Discuss the constitutional arrangement of revenue raising power between federal and
regional government in Ethiopia
4. What are variables considered (components of the formula) to subsidized each regional
state in Ethiopia.
5. List and discuss federal government of Ethiopia budget process
6. Briefly discuss the federal government of Ethiopia revenue budget structure
7. Briefly discuss the federal government of Ethiopia Expenditure budget structure
8. Briefly discuss how the following types of incomes are taxed in Ethiopia (i.e briefly discuss
the tax base and tax rate for each types of incomes listed below).Refer: Proclamation No.
979/2016
a) Tax on income from employment/Personal income
b) Tax on income from rental of building
c) Business income tax
d) Tax on Income from Royalties
e) Income from rendering of professional service.
f) Tax on Income from Games of Chance:
g) Tax on Dividend Income
h) Income from casuals rent of property
i) Tax on Interest Income on Deposits
j) Tax on Gains of Transfer of Certain Investment Property
9. Briefly discuss how the following indirect taxes are taxed in Ethiopia (i.e briefly discuss the
tax base and tax rate for each of indirect taxes listed below).
a) Value Added Tax.( Refer: Proclamation No. 285/2002
b) Turnover Tax. Refer: Proclamation No. 308/2002
c) Excise Tax.( Refer: Proclamation No. 1186/2020
d) Customs Duty. Refer: Proclamation No. 859/2014
e) Stamp Duty. Refer: Proclamation No. 334/1987

10. Briefly discuss withholding income tax and the procedure for withholding income tax on
payment.
11. Describe briefly the tax declaration and assessment procedure for category “A” business
income tax payers.
12. Describe briefly the tax declaration and assessment procedure for category “B” business
income tax payers.
13. Describe briefly the tax declaration and assessment procedure for category “C” business
income tax payers.
14. State briefly the procedure and condition for tax payment and collection enforcement.
15. Discuss in brief the conditions and procedures for reward and administrative penalties for
business income tax payers.

1 Public Finance Term paper