Perceptions and Challenges in the Application of Presumptive Tax in Addis Ababa: In Case of Arada Subcity
No Thumbnail Available
Date
2019-11
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
Ethiopia collects small amount of tax (13.4% tax to GDP) from its tax payers compared to other sub Saharan African countries that collect average of 18% of tax to GDP. The share of revenue from the presumptive tax is also tiny compared to the total tax revenue and its potential which is below 1%. In spite of this small revenue, perception of the Addis Ababa tax payers towards the performance of tax authority and the amount of tax imposed is negative. The study conducted in the Arada sub city shows that the presumptive tax payers do not believe that the tax system is not simple to understand. These type of tax payers also feel that they are paying too much and the administrative capacity of the tax collecting authority is neither good nor bad. On the other hand, the accessors who took part in the study stressed that the amount of tax being collected is small compared to the potential as well as to the civil servants who are earning less but paying more. The study concludes that the tax payers‘ negative perception has to be addressed whether the concern is not for legitimate reason since it possess challenges in the tax collection process as well as in increasing tax revenue
Description
thesis submitted to School of Graduate studies of Addis Ababa University in partial fulfillment of the requirement for Master of art in Accounting and Auditing
Keywords
Administrative capacity and fairness., Arada Sub city, Simplicity, Presumptive tax