Browsing by Author "Mesfin, Birhan"

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    Value Added tax Revenue Performance and Administration Problems in Case of ERCA in Gondar
    (Addis Ababa University, 2014-02) Mesfin, Birhan; Ponnala, Venkati (PhD)
    Every government needs dependable and sustainable domestic revenue so as to run its function. In North Gondar, where substantial proportion of government revenue has been collected from tax. However, in practice, VAT revenue performance in North Gondar was not geared with VAT theoretical feature. This is due to VAT administration problems particularly for key VAT administrative functions. Survey had been conducted to gather information about taxpayers and tax officials’ attitude towards VAT administration problems in case of ERCA in Gondar branch. Self-administered semi- structured interviews and questionnaires were distributed for ten tax officials and fifty VAT registered taxpayers respectively. Further, secondary data was collected to measure the VAT revenue performance of the authority. The study tries to investigate and analyze VAT administration problems in case of ERCA in Gondar branch and it tries to assess VAT effectiveness in generating more government revenue (VAT revenue performance in the authority). For this study Surveying method through semi- structured questionnaire and semi- structure self administered questionnaire is used to investigate the research questions mentioned in chapter one. Besides, the study used percentages, mean and standard deviation statistical tools to strengthen and to make the study more systematic. In general, to analyze the data, statistical package for social science (SPSS) soft ware version 16 was employed. The result part presents response rate for tax official and taxpayers survey, VAT administration tasks on key administration function, strength of VAT administration, VAT rate and market competition. Finally, this section presented VAT revenue performance of the authority and identifies VAT administration problems. VAT is the major source of government revenue in most developing countries. Thus, VAT has a significant role in the revenue system of government of Ethiopia. To sustain its role for the generation of revenue, it is important to ensure that the revenue generated by VAT system should be efficient as possible. In the survey opinions were forwarded by the respondents. For instance, strengthening administration capacity by skilled manpower and the required materials to encourage honest traders by rewarding them and giving incentives and taxpayers should obey for the rules and should also cooperate with the authorities’ operational activities