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Ethiopia’s Tax Authority Dissatisfied with Cash Register Servicing

The Revenues and Customs Authority of Ethiopia is dissatisfied with the annual inspection services offered to taxpayers by cash register suppliers. Cash register machines can fail in processing data transfers in the absence of appropriate servicing it was said.

ERCA has authorized about 11 companies’ to supply cash register machines on the local market. The suppliers are mandated to set up repair and maintenance facilities to offer annual inspections as per the arrangement with the tax authority.   

The regulations established by ERCA penalize taxpayers for falling to servicing their registers on an annual basis and yet only about a quarter of the 12,465 machines sold last year have been serviced this year.

The reason for delays associated with the proper servicing of cash register machines is that taxpayers are unwilling to allow their machines to be inspected according to the contract they entered with the suppliers upon purchase claimed Bemnet Emanuel, Marketing Manager of I-Pos, one of the suppliers.

Businesses claim that their machines are in working order and do not need servicing when technicians are sent out to perform maintenance inspections he said.

Businesses on the other hand allege that the reluctance is due to the long time that supplier take to return machines taken for servicing as opposed to the 48 hours between the taxpayer’s notification for the need of service or maintenance to when the service is completed as is established by law.

The 48 hour law is unrealistic in the face of the current capacity of supplying companies and the large number of customers and the government should support the sector with incentives according to Bement.

ERCA maintains that the law is a standard for all countries making use of cash registers.

Source: Addis Fortune