Prospects And Challenges Of Adopting Electronic Taxation System The Case Of Shaggar City Administration Revenue Office Oromia Regional State Ethiopia

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