Abstract:
Electronic tax system is becoming increasingly recognized as a tool to collect tax in developing
countries. The Ethiopian government is now implementing E-tax system for Large and medium
tax payer also shaggar city revenue office apply for selected category tax payer’s. This study was
conducted to assess prospects and challenges of adopting electronic tax system the case of
shaggar city administration revenue office. This study employed descriptive research design with
qualitative approach. Simple random sampling technique was used to select 249 tax payers as
study units and purposive sampling used to select interviewee. Data was collected from a total
238 respondents using a structured pre tested questionnaire and qualitative data was collected
from six key informants using semi structured interview. The data was cleaned, coded, entered
and analyzed using SPSS computer software package version 23. The major challenge hinders
the adoption of e tax system is the lack of adequate awareness on both sides of taxpayer and
employee; taxpayers do not have enough knowledge about computers, Poor internet connection.
Furthermore, this study shows that implementing an electronic tax system has many advantages,
such as less space needed for paper records, quicker processing times than with a manual
system, better taxpayer service from tax officers, online access to revenue office data, time
saving and convenient tax payment options that eliminate the need for taxpayers to visit a bank,
and improved timely tax filing and payment. During implementation awareness of tax payers and
workers should give special attention
