Assessment of tax collection system and challenges on category “A” taxpayers: a case study in Arada sub City

Abstract

Ethiopia, like any other developing countries, faces difficulty in raising revenue to the level required for the promotion of economic growth. Taxation has increased in importance not only as a tool of raising revenue for the traditional roles but also for accelerating the economic growth and ensuring social justice. The goal of this research is to study tax assessment and collection problems of category “A” taxpayers found in Arada sub city branch office of Ethiopian revenue and customs authority. To achieve this objective, the researcher used both quantitative and qualitative research methods. And also the researcher used probability and non-probability sampling techniques. The information gathered witnessed that there exist inefficiency and insufficient number of tax office employees and there is a big problem for system connection due to this many taxpayers does not get the service as they came to the tax office. Moreover, there is lack of tax knowledge by taxpayers. Due to this, delay in tax payment, do not pay the proper amount they should pay and negligence are taken by taxpayers as solution to escape from payment of taxes. To create effective and efficient tax collection system the tax office should be solve the administration problems.in addition the tax office should employ or recruit sufficient number of employees to avoid work influences by one employee and offer continuous training for their employees by allocating enough money to training center.