FACTORS AFFECTING LOCAL TAX REVENUE COLLECTION IN ETHIOPIA

Abstract

The purpose of this paper is to analyse the factors that affect local tax revenue collection from taxes by the revenue government. The main objective of this study is to explore the factors affecting tax revenue collection in Ethiopia by using a secondary data. Local Tax revenue may be affected by various factors such as inflation, unemployment, tax rates, level of actual income exchange rate and foreign direct investment. A number of studies have been done in Ethiopia as far as tax revenue is concerned but still not effective to test all factors thus the study was meant to identify factors affect tax revenue in Ethiopia. The research approaches adopted in this thesis include collections of series data set qualitative analyses. The time period covered was ( 2021). Secondary data were collected, theory based and government sources. The findings from this research provide evidence that, tax collection problem result shows negative significant, tax effective system unemployment.. The main conclusions local tax revenue from this study are factor affecting tax revenue. The study also provides conclusion and summery.