The Effect of Tax Administration on Tax Collection in Selected Cities of Central Ethiopia Region, Ethiopia

Taxes have been one of the main sources of government revenue. Tax administration is one of the responsibilities to any government for implementing and governing the tax laws. This study is aimed at investigating the effects of tax administration on revenue generation in selected cities in Central Ethiopia region, Ethiopia. The study uses descriptive and explanatory research design. Category “A” tax payers are the primary source of data and five years (2019/20-2023/24) revenue generated used as a secondary data. The data was analyzed using descriptive statistics, Pearson correlation and regression analysis. The findings of the study indicated that tax Administration in the selected cities is not efficient and effective. The study further revealed that the inefficiency of revenue generation in the study area is the result of incompetent tax assessment and collection procedure and corruption practices. To this end, the study recommends revenue office should embark on more enlightenment campaign of category “A” tax payers in the study area on the benefits of paying tax. Moreover, the quality and efficiency of tax office employees should be improved so that the efficiency and effectiveness of the tax administration could increase the study area.