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Original Research | Economics and Finance | Volume 15 Issue 8, August 2026 | Pages: 186 - 188 | Ethiopia
Determinants of Tax Collection Effectiveness among Category B Taxpayers: Evidence from the Addis Ababa City Administration, Ethiopia
Abstract: Taxation is a crucial source of revenue for governments to finance public expenditure and development initiatives. However, in Addis Ababa, Ethiopia, the effectiveness of tax collection, especially among Category B taxpayers, remains suboptimal due to various determinants such as taxpayers? ignorance, corruption, tax evasion, and administrative inefficiencies. This study investigates these factors using a quantitative research approach, employing binary logistic regression analysis based on primary data collected from 32 purposively selected tax officials within the Lemi Kura Revenue Branch of the Addis Ababa City Administration. The findings indicate that taxpayers? ignorance of their obligations, corruption and collusion, and tax evasion significantly decrease tax collection effectiveness. Interestingly, the negative coefficient for tax audit and verification suggests that current traditional auditing mechanisms are perceived by respondents as counterproductive or prone to administrative bottlenecks, while penalties and fines do not show a statistically significant impact. Based on these results, the study recommends enhancing taxpayer education, simplifying procedures, strengthening audit capacity through modern risk-based frameworks, leveraging technology, and improving internal controls to boost revenue collection.
Keywords: Tax collection effectiveness, Tax compliance, Category B taxpayers, Revenue administration, And Tax evasion, Ethiopia
How to Cite?: Dr. Wondimagegn Tadesse, "Determinants of Tax Collection Effectiveness among Category B Taxpayers: Evidence from the Addis Ababa City Administration, Ethiopia", Volume 15 Issue 8, August 2026, International Journal of Science and Research (IJSR), Pages: 186-188, https://www.ijsr.net/getabstract.php?paperid=SR26729125225, DOI: https://dx.doi.org/10.21275/SR26729125225