Determinants of Tax Collection Performance the case of Holeta town revenue office Oromia Regional State

Abstract

Government as any organization needs revenues to run both public and administrative activities. Tax is one among them and it is a contribution demanded by the state. Tax collection is very important for every government in the world as it enables the government to acquire assets that are not liable to debt. This research study aims to investigate the determinants of tax collection performance in the case of the Holeta town revenue office. The independent variables considered in this study are tax awareness, tax administration, tax assessments, tax audit effectiveness, and attitudes of tax collectors, while the dependent variable is tax collection performance. The study was conducted using a sample size of 98 tax collectors, drawn from a population of 130.Data was collected using a structured questionnaire and analyzed using both descriptive and inferential analysis. A response to survey data was analyzed using SPSS (V.26) software. The study findings suggest that tax assessment, tax awareness, tax administration, tax audit effectiveness and attitude of tax collectors were statistically significant and positive effect on tax collection performance in the Holeta town revenue office. Overall, this study contributes to the existing body of knowledge on tax collection performance in the region and provides valuable insights into the factors that influence tax collection performance in Holeta Town. The findings of this study could also be useful for other regions and countries seeking to improve their tax collection performance.