Abstract:
This study aims to assess the determinties of tax compliance among category 'B' taxpayers in Ambo,
Ethiopia. To accomplish this, 178 samples were selected from the total population of category "B"
taxpayers using a simple random sampling technique to determine the sample size. Primary data were
collected using self-administered questionnaires and analyzed using descriptive statistics, frequency
distributions, and ordered logit regressions. The results of the ordered logit regression indicate that tax
compliance is positively affected by the education level of taxpayers, the fairness of tax rates, and the
effectiveness of tax authority enforcement. However, tax compliance was negatively affected by family
size and age. It is recommended that the tax authority establish effective and sustainable awareness and
tax education programs targeting the general public, especially taxpayers, through various media
channels as well as in-person sessions. Additionally, tax authorities should enhance enforcement by
implementing stronger audit practices and improving data analyses. Regular compliance checks and
clear communication regarding penalties for noncompliance will help reduce tax evasion. Ensuring
fairness in taxation, engaging taxpayers in discussions on local tax policies, and being transparent about
the use of tax revenue will foster trust and encourage greater compliance. The researcher ultimately
suggests that relevant authorities should offer various job opportunities and incentives to help increase
the earnings of larger families. Finally, specific strategies should be designed to address compliance
issues faced by older taxpayers. This might involve simplifying tax processes or offering personalized
support to ensure that they fully understand their obligations
