The practice and Challenges of E-Tax Implementation in Ethiopia : The Case of Ministry of Revenue Eastern Addis Ababa Small Taxpayers branch Office

Abstract

Tax returns are submitted online using electronic filing. It enables taxpayers to submit their taxes from the comfort of their own homes and get refunds much quicker than if they used paper tax forms. This study's objective was to examine the potential opportunities and difficulties of e-filing small tax payers in Eastern Addis Ababa tax office. In order to achieve this goal, a descriptive study was carried out using a Likert scale survey and interviews from the Ethiopian Ministry of Revenue, Eastern Addis Ababa small taxpayers. A systematic sampling procedure was used to identify 263 taxpayers of Eastern Addis Ababa tax office small tax payers. In line with this, the data was interpreted and analysed for which 240 responses successfully returned. The study found that some of the real issues taxpayers face when using e-filing include an unreliable e-filing service, system inefficiency due to its incomplete functionality, and a lack of support for e-filing from an e-payment support system, which still forces taxpayers to visit the tax office in person. The obtained data indicated that electronic tax filing systems increase taxpayer satisfaction and save time by eliminating the emotional distress of lengthy lines, while also making taxpayers more productive and efficient because they can manage their own taxes and have the option to record tax credits and refund tax at any time. The research recommended that tax officials should enhance the system's efficiency by providing an online registration, clearance, and payment mechanism