Abstract:
Taxation is principal method by which a government gains revenue into its budget. That revenue goes into a vast number of items, from paying debt, defending the potential for implementing certain policies to paying for public services and welfare benefits and the military. The main objective of the study was conducted to examine the tax collection problem of category “C” tax payers of Kachisi town, Small and microenterprises. The study used both descriptive and explanatory research design with quantitative approach. The sample size was 255 and stratified sampling techniques were employed. SPSS software was employed in the study for organizing, summarizing and presenting collected data. The finding of the study also indicates that, Kachisi town taxpayers were most satisfied with Tax compliance cost of tax collection dimensions. However, tax payers were less satisfied with lack of awareness dimensions of service quality. All the service quality dimensions contribute to 85.6% of the variations in the dependent tax collection. The model was shown to be significant (sig.0.000) in an ANOVA test of the three variables' combined overall and 0.05 significance level significance. A large F statistic of 321.333 and a p value that was lower than the usual significance limit of 0.05 supported this. These findings indicated that all independent variables are reliable indicators of how effectively Kachisi town collects tax. Tax collection was the dependent variable, and those four aspects of the quality of the tax collection service are the independent variables. The correlation result between the variables was significance level at 0.01 (P,0.01). Qualitative findings also indicate, increasing tax compliance cost, evasion of tax, negative perception of tax payers, and lack of awareness. Generally, as the tax collection service dimensions represent 85.6% of the variation in tax collecting, the category ”C” tax payer’s administration should work on all the service quality dimensions to improve and maintain its tax collection in selected Kachisi town administration. Thus, it is recommended that the tax authority should provide sufficient training for both taxpayers and staffs, promote transparency, and strengthening legal enforcement
