Activity in Merkato, Addis Ababa’s largest commercial hub, has come to a standstill as merchants protest the government’s mandatory receipt-based transaction policy. The demonstrations have resulted in widespread shop closures, leaving daily laborers without work and disrupting the livelihoods of many.
The new policy, which requires all transactions to include official receipts, has caused significant confusion and frustration among traders, particularly in areas such as Bomb Terra and Dubai Terra. Many merchants argue that the initiative disproportionately targets small businesses, with fines exceeding 100,000 birr ($1,850) for non-compliance.
Merchants Highlight Challenges
Traders have voiced concerns about acquiring goods through informal channels, a common practice in the market. They also fear penalties from tax officials, who some claim pose as customers to detect violations. Reports of fraudulent individuals impersonating tax officers and demanding bribes have added to the merchants’ grievances.
A fabric seller from Dubai Terra explained, “The goods we sell often don’t come with receipts, and this policy has left many confused and afraid. It’s causing chaos in the market.”
Government Defends Tax Initiative
Officials, including Addis Ababa Mayor Adanech Abiebie, assert that the policy is necessary to improve tax compliance, reduce illegal trade, and increase transparency in commerce. She called on wholesalers to report suppliers who fail to issue proper receipts and stressed that trading without receipts is “non-negotiable.”
To curb tax evasion, the Ministry of Revenue has introduced QR-coded invoices as part of the Tax Invoice Usage and Administration Directive. However, merchants worry that this will create additional complications, particularly for those reliant on informal supply chains.
Impact on Business and Livelihoods
The protests have affected not only merchants but also daily laborers, who rely on shop activities for their income. Many laborers have been left idle as shops in sections like Dir Terra and Military Terra remain partially or completely closed.
Some merchants have accused the government of implementing the initiative without adequate consultation, leading to widespread confusion and economic disruption. Traders’ associations continue to engage with officials, seeking fair solutions to balance compliance with practical market conditions.
While discussions are ongoing, merchants emphasize that unless the policy is clarified and its enforcement streamlined, the protests and disruptions in Merkato are likely to persist.
