What factors affect the adoption of digital banking in Ethiopia?4 answersFactors that affect the adoption of digital banking in Ethiopia include lack of technological knowledge, lack of management support, shortage of training, infrastructural problems, perceived risk, and economic factors. Government support and perceived benefit positively influence the adoption of e-banking. Loss of power, hardware malfunction, operating system crashes, network partitions, failure of internal controls, human errors, access to systems, and negligence arising from employees are important factors affecting the operation of e-banking. Customer trust mediates between perceived ease of use, infrastructure, security, and e-banking adoption. Economic factors such as unemployment, inflation, source of customers' income, and saving habits also affect the adoption of digital financial products and services. Additionally, the obsoletion of technological environment, inflexibility of government policies, educational background of customers, and diverse cultures of societies are factors that hinder adoption. Low awareness, perceived relative advantage, perceived compatibility, and perceived complexity of the products and services also contribute to the underutilization of digital financial products and services by customers.
How has digital diplomacy been used by Ethiopia in the post-2020 period?4 answersDigital diplomacy has been used by Ethiopia in the post-2020 period to engage with local youth and spread messages using mobile apps like WhatsApp. The high cost of accessing the Internet, slow speed of mobile Internet data plans, reluctance of students to forward government messages, and negative image of students about the United States have been identified as factors that deter youth in Ethiopia from forwarding the US message over WhatsApp. Additionally, the COVID-19 pandemic has led to the increased use of videoconferencing systems like Zoom, Teams, and Meet for diplomatic communication. The pandemic has also positively affected the conduct of digital diplomacy in Africa, challenging the myth of the digital divide between the West and Africa. However, it is important to note that Ethiopia's authoritarian regime has constrained its citizens' ranges of political and digital expression through surveillance and censorship, which hinders sustainable development and marginalizes political challengers and critics.
To what extent does the Ethiopian fiscal tax incentives scheme promote economic development?5 answersThe effectiveness of the Ethiopian fiscal tax incentives scheme in promoting economic development varies depending on the specific incentives and sectors. Tax revenue has been found to have a positive and statistically significant effect on economic growth in both the long run and short run, indicating that tax revenue enhances economic growth in Ethiopia. Tax holiday has been found to be significant in attracting foreign direct investment (FDI) to Ethiopia, particularly in the manufacturing sector, while custom duty exemption has a significant impact on the construction and electricity and water supply sectors. Tax incentives have also been found to have a positive significant impact on domestic investment in the long run, with a one percent change in tax incentive leading to a 1.401 percent change in domestic investment. However, the impact of tax holiday on employment creation and revenue reduction is dependent on the specific circ*mstances and time period of the tax holiday. Overall, the Ethiopian fiscal tax incentives scheme has shown some effectiveness in promoting economic development, particularly in attracting FDI and stimulating domestic investment.
How can digitalization be used to improve the efficiency of tax administration?5 answersDigitalization can improve the efficiency of tax administration by implementing automation and integration systems, electronic data exchange, and electronic services for taxpayers. The introduction of information technologies into tax authorities' activities and changes in tax activities and interactions between participants in tax legal relations are necessary for digitization of tax control. The digital transformation of the economy and the use of advanced digital technologies in business activities can lead to the formation of risk factors for tax evasion, which can be addressed through effective tax administration using information and communication technologies. The principles for creating a digital tax administration ecosystem using advanced technologies such as distributed registry, artificial intelligence, and predictive analytics can enhance the efficiency of tax administration and increase compliance with tax discipline and legislation. By leveraging digital technologies, tax authorities can improve operational processes, enhance interaction with taxpayers, and effectively manage tax risks, ultimately increasing tax revenues to the budget.
What is the disadvantages of E-commerce using Ethiopian technologies ?5 answersThe disadvantages of E-commerce using Ethiopian technologies include a low adoption of broadband connections, mobile phones, computers, and printers. Additionally, the software development industry in Ethiopia is in its early stage, with a lack of awareness of usability methods and lacking resources. These factors contribute to a gap between IT development and the local use situation, making it challenging to address usability and user-centered design in software practice. Furthermore, adverse market conditions and incomplete input markets limit the adoption of fertilizer-based technologies among resource-poor households in rural Ethiopia. Lowering transaction costs through investments in infrastructure and market institutions can help expand the technologies available to farmers and stimulate demand.
What perspectives does digitalization offers to tax audit?5 answersDigitalization offers several perspectives to tax audit. The adoption of digital technologies, such as artificial intelligence, machine vision, and big data, can improve the efficiency and effectiveness of tax administration and control. It can reduce administrative burdens and barriers, enhance self-service capabilities for taxpayers, and strengthen control over individual taxpayer operations. Digitalization also enables remote control and reduces the time and number of tax audits, while improving their quality. Furthermore, it can help in reducing the shadow economy, increasing tax revenues, and promoting voluntary compliance with tax legislation. Taxpayers' acceptance of digital audits depends on features such as data privacy, audit certainty, transparency, and independence from tax intermediaries. However, there may be a mismatch between taxpayers' and tax auditors' perceptions about digital audits and tax compliance, highlighting the need for safeguards and a trusting relationship between taxpayers and tax auditors.
