Micro Business Taxation in Ethiopia: Practices, Perceptions and Challenges
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Date
2018-11
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Addis Ababa University
Abstract
This thesis examines practices, perceptions and challenges of micro business taxation in
Ethiopia. The study adopted a sequential explanatory mixed research approach. Survey of
micro business taxpayers in Addis Ababa was conducted. This was supplemented by in depth
interviews with tax officials from “Merkato Kuter Aned” Branch office of the Addis Ababa
Revenue Bureau and selected taxpayers. This study reveals a number of findings including
the absence of micro business tax payers representatives in the daily estimation committee,
lack of knowledge of tax payers and tax assessment committees, the presence of nepotism,
saving problem of tax payers, failure to resolve complaints on time, the presence of high tax
rate ,the presence of illegal businesses, political influence were noted to be major challenges.
Moreover the finding revealed that the tax system is so complex and unfair, unfair treatment
by officers and the presence of different problems in micro business tax administration in the
tax authority. Finally, the thesis suggests a series of measures which could be taken by the
government in general and tax authorities in particular. Some of these measures include:
simplify micro business tax policy and administration issues; ERCA should give intensive and
repetitive training to improve the knowledge and attitudes of tax payers.
Description
A thesis submitted to Addis Ababa University College of business
and economics department of Accounting and Finance in the partial
Fulfillment of the requirements for the degree of master of
Science in Accounting and Finance.
Keywords
Administration, Businesses, Challenges, Tax payers