Abstract:
Tax collection practice is one of the most significant issues in raising revenue to the level required for
the promotion of economic growth of the government. The main objectives of this study are to assess
challenges of tax collection practices in Ambo Town City Administration. The research design
employed in the study was descriptive survey study on 95 samples from category ‘C” tax payers. The
sampling techniques used in the study were simple random sampling and purposive sampling. The
study applied both primary and secondary types of data which were collected through survey
questionnaire, interview, and analyzed quantitatively and qualitatively.
The study showed that lack of equity and fairness in tax assessment, the complexity of the tax rules,
taxpayers’ poor perceptions of tax evasion, the existence of unethical and corrupt tax officials,
taxpayers’ negative attitudes toward the government, lack of human and technological resources of the
organization, and poor social norms between taxpayers and the revenue authority were major
challenges for tax collection in the study area.
