The Efficiency and Effectiveness of Tax Management in Ethiopia with Special Emphasis on Value Added Tax: Case of Large Tax Payers Branch Office (Lto)
No Thumbnail Available
Date
2016-06
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The Government to undertake many socio-economic activities the tax revenue should be
efficient and effective. Thus efficient and effective tax revenue management is the way
enabling to achieve the 20 years the country development goals, which is Ethiopia has to
get a position as medium world economy countries. According to EFIRA 2007 report
federal VAT revenue (on domestic transaction) accounted for about 41 percent of total
federal revenues from domestic sources. However; in the current situation the attitude of
tax payer is minimum, the awareness of public is weak, and the capacity of the office is
under ability to implement the VAT policy. So as to this a survey was carried out to cover
the area of efficiency and effectiveness of tax management special emphasis on VAT. The
objective of the study is to assess the efficiency and effectiveness of tax management with
special emphasis on VAT-the case of ERCA-Large Tax Payers Branch Office. The
research instruments are questionnaires and interview for the three target groups. Those
are the tax payers, the communities of Addis Ababa, and the branch authority employees.
The finding shows that the causes of efficient and effective VAT management failure are
multidimensional. They include both internal and external factors and these are
interrelated. Among the causes of failure are: limited office capacity, lack of unfit
technologies, lack of sophisticated laws and procedures, lack of public awareness, and
negative attitude of tax payers in the study area. The conclusion from the study data were
collected from the tax payers, the communities of Addis Ababa, and the branch Authority
employees by using questionnaire and interview. Finally, recommendations were given
based on the findings. Total population of the study is as follows. There are three target
groups; Tax payers, tax collectors and consumers. Therefore, their population also
differs. The total population for tax payers is 1076, for tax collectors is 205 and for
consumers is all residents of Addis Ababa. The sample technique used is purposive for
tax collectors, convenience sampling for the rest.
Key words:
Tax Payers
Tax Collectors
Consumers
Consumption Tax
VAT (Value Added Tax)
Description
Keywords
Tax Payers, Tax Collectors, Consumers, Consumption Tax, VAT (Value Added Tax)