Determinants of Effective income tax Collection Practice: a Case Study in Nifas Silk Lafto Sub City Revenue Administration office
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Date
2025-03-04
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A.A.U
Abstract
The effective collection of income tax is crucial for the financial sustainability of local
governments and the overall economic development of a region. This study investigates the
determinants of effective income tax collection practices, focusing on the case of the Nifas Silk
Lafto Sub City Revenue Administration Office. Through a comprehensive analysis of factors
influencing income tax collection, including taxpayer compliance, complexity of the tax system,
administrative efficiency, and enforcement mechanisms, this research aims to provide valuable
insights for improving revenue collection strategies. The methodology employed in this study
includes a combination of quantitative analysis, qualitative research, and case study approaches.
Data was collected through surveys, interviews, and document analysis to assess the current
practices and challenges faced by the revenue administration office. The findings of this study
shows the complexity of the tax system and other factors such as tax rate, tax knowledge and
education, probability of detection, perceptions on the role of the government and peer influence
can significantly impact effective income tax collection. The findings highlight the importance
of taxpayer education, simplified tax procedures, and effective enforcement measures in
enhancing income tax collection efficiency. The results of this study have significant
implications for policymakers, tax administrators, and researchers in the field of public finance.
By identifying the key determinants of effective income tax collection practices, this research
contributes to the development of targeted interventions and policy recommendations to
strengthen revenue mobilization efforts in Nifas Silk LaftoSub City and beyond.