Assessment of Category “A” Taxpayers` Perception Towards Tax Fairness in Addis Ababa: The case of Merkato

Abstract

Addis Abeba city administration planned to increase tax collection ratio by 17 % in the second. But data from the report of revenue Authority office shows that a decline in tax collected for the last three years.., this study investigates the fairness perceptions of Addis Ababa City Merkatto number two business profit taxpayers and its impacts in their perceptions,. The study adopted a mixed method research approach to answer research question. The data collected from 255 business profit taxpayers 225 were through distributing of self-administered questionnaires and the remaining 30 through in-depth-interview. The results of this combined research methodology suggest that Addis Ababa City business profit taxpayers did not perceive positively in respect of general, vertical, personal, exchange, and administration fairness except horizontal fairness on the prevailing business profit tax system. Finally the thesis suggests a series of measures, which could be taken by the government in general, and tax authorities in particular; improving policy and administration issues, educating the taxpayers and conducting awareness creation and consultation sessions, and providing all necessary social service to the public, as well as maintaining the tax system fair and equitable