Lencho, Tadesse (PhD)Kedir, Nuredin2018-10-152023-11-082018-10-152023-11-082018-05http://etd.aau.edu.et/handle/123456789/12734Besides adequate legislative and institutional enabling environment, the establishment of autonomous local government may be ascertained mainly with constitutional or legal assignment of tax power. The tax autonomy of a given sub-national government mainly gauged taking into account own source revenue share of the same. Sub national government must be in a position to cover greater part of financing of the sub national expenditure through own revenue sources. Decentralization without pure own revenue source will result in inoperative and meaningless government arrangement and the local government seems more of an agent of central government- which is accountable towards the national government and not to its constituents. This work studies the allocation of tax power between the Federal Government and the capital while taking into account the own source revenue share of the capital as a basic parameter to gauge the tax autonomy of Addis Ababa City Administration. Besides this,the real actors on those limited tax power of the capital will be assessed, examined and disclosed on this work. The study was conducted mainly based on legislative analysis, interview and case analysis. The findings of the study show that, Addis Ababa is not enjoying tax autonomy, which may reflect its autonomous status. To make the matter worse, the federal Government is working hard to scramble those limited tax power of the capital. Based on the result of the study, this researcher managed to offer some possible recommendationsenEroding Taxation PowerThesis