Abstract:
The main objective of the study was assessing factors influencing taxpayers’ compliance behaviors category ‘B’ taxpayers in Gulele sub-city. The compliance behavior of taxpayers is a critical aspect of effective tax administration and revenue collection. The study was used explanatory research design that employs survey method of data collection. The sample size was 120 respondents selected by simple random sample technique. The study was use explanatory research design that employs survey method of data collection. The research identifies several key factors that influence compliance behaviors among Category 'B' taxpayers. These include the complexity of tax regulations, perceptions of fairness in the tax system, the quality of tax services and administrative procedures, the level of trust in government institutions, and the perceived effectiveness of enforcement measures. Additionally, socio-economic factors such as income levels, education, and business size are also explored as potential influencers of compliance. Based on the finding it is recommended that wise utilization of the collected tax by the government ,increase two-way communication system between taxpayers and the tax authority, consideration of the ability to pay principles during tax assessment, encouraging females participation in the business and educating the taxpayers about the tax system was increase the voluntarily tax payers
