What matters for the efficiency of Micro Business Tax Collection? Evidence from the Eastern Part of Ethiopia.

Abstract

This study aims to identify factors that influence efficiency of micro Business tax collection in the Easter part of Ethiopia. A ordered logistic regression model was used to analyze the efficiency of micro business tax collection and taxpayer tax knowledge, tax law enforcement, corruption, tax compliance resolution, and fairness of tax through a closed questionnaire by using stratified sampling technique. The study results show that efficiency of micro business tax collection in the eastern part of Ethiopia are influenced by the taxpayer tax knowledge, tax law enforcement, corruption control, and the tax compliance resolution capacity of the tax authorityThe study's findings will provide insights into improving the efficiency of microbusiness tax collection in Ethiopia from the perspective of microbusiness taxpayers. The final results of this study are distinctive because they show how the efficiency of microbusiness tax collection in Ethiopia is affected by how much taxpayers know about taxes, how well tax laws are enforced, how well corruption is controlled, and how well the tax authority can solve problems with tax compliance.