Challenges of Excise Tax and its Contribution to Government Revenue: In the Case of MOR/Large Taxpayers Branch Office

No Thumbnail Available



Journal Title

Journal ISSN

Volume Title


Addis Ababa University


The objective of the paper focus on challenges of excise tax and its contribution to government revenue. Excise tax is one of the sources of revenues for government in any country. Excise taxes have social and environmental functions, since changes in the rates and structure of excise taxes influence consumer behavior in certain areas. The research approach adopt in this thesis includes mixed research approach using primary and secondary series data of challenges of excise tax and its contribution to government revenue on each excisable locally produced/manufactured goods. The primary data is collected through questionnaires and interview. Descriptive statistics tool are employed to analyze and presented using tables, graphs and frequency of obtained data. The main areas where lack of clear defined base of excise tax, lack of having clear and justifiable excise tax computation procedure manuals and guideline, insufficient access in getting adequate training and education on excise tax laws, no integrated system of excise tax refund, and corruption problems. Therefore these all are manifested as: no attempts could be seen from the MOR to update the laws to go with changes in the business environment. The percentage performance of excise taxation in relation with national income and total government revenue, the excise tax comprises 17.59% of total tax revenue in fiscal year of 1999/00 and decreasing to 7.75 % of total revenues in 2017/18. And also, the excise tax per GDP growth has been decreasing from 1.12% in 1999/00 to 0.79 % in 2017/18. This implies that the government should formulate a policy to enhance excise tax revenues.


A Thesis Submitted to the college of Business & Economics of Accounting & Finance in the partial fulfillment of the requirements on the degree of Masters of Science


Excise tax, Government revenue, Taxpayers