Assessment of Factors Affecting Tax Collection:The Case of Ministry of Revenues of Ethiopia Federal Large Taxpayers Branch
No Thumbnail Available
Date
2023-06-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
A.A.U
Abstract
The goal of this study was to look at the elements that influenced favorably and adversely tax collection in Ministry of revenues of Ethiopia, Federal large taxpayers. Particularly, it investigated the effects of the prevailing political situation on revenue collection, the implications of tax policies implemented by incumbent politicians, and the effects of ICT infrastructure and qualified workforce on revenue collection. A descriptive research design has been selected due to the way it addressed the study areas empirically through numerical measurement and statistical analysis. The target population consisted of federal taxpayers who were classified as ‘large taxpayers’. Despite there were 794 taxpayers who fit this description, a sample of these was chosen for the study. A sample of 266 taxpayers was chosen using a simple random sampling technique. A total sample of 240 was obtained after 266 questionnaires were distributed, with 26 of them—or 10%—not being returned and as secondary data five years revenue collection of the federal large taxpayer’s branch data was taken. SPSS, a statistical tool for social scientists, was used to analyze the data. The associations between the independent and dependent variables were investigated using descriptive statistics. The analysis results demonstrated that the prevailing political climate actually, have an impact on business operations, people's security, resource availability and distribution, and, as a result, tax collection and tax compliance have been hindered. It also indicated that the rule and regulations that were in effect at that particular point had an impact on tax collection and, was difficult to understand and analyze. The study claims that the MoR support system, which included, among other things, information technology systems like Electronic taxation (E-tax), the workforce, and major stakeholders, all played an important part in the Revenue Collection process in MoR. The study suggests additional investigation to figure out the level of independence or interdependence of the political situation and revenue collection. It also suggests more research into existing tax laws and regulations, as well as how appropriate those who they rule. Additionally the study suggests more research on taxpayers as MoR’s stakeholders in order to devise methods of assuring adherence to rules and contentment for stakeholders