Micro Business Taxation in Ethiopia: Practices, Perceptions and Challenges

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Date

2018-11

Journal Title

Journal ISSN

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Publisher

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

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