ASSESSMENT OF TURNOVER TAX COLLECTION AND ITS PROBLEMS THE CASE OF WOLKITE TOWN

Abstract

The study was conducted tax assessment and collection problem in Wolkite town revenue authorityknowledge and tax compliance awareness have received great attention around the world. Taxpayers’awarenessandknowledge indicatetoobtainthe degree of voluntarytaxcompliance.Therefore, understanding tax payers’ knowledge and compliance awareness was an important issue for any government and revenue collecting authority particularly in a self‐assessment environment. The objective of this study was to assess turnover tax collection awareness and performance on in Wolkite town. To achieve the research objective researcher was adopted a mixed methods approach both quantitative and qualitative techniques. For 124 sampled respondents 104 respondent’s voluntary to question, researcher has distributed and collected questionnaires that usedin this study. The collected data was processed and analyzed by using simple statistical tools like table and percentage. This study found that the TOT services most strongly challenged by lack of carefulness by the tax collector officers and the low awareness and performances of the tax payers. Based on that the turnover (TOT) payers do not aware properly for the paying tax the collection system is not effective and attain their goals and objectives of the authority. The knowhow or the knowledge of the turnover tax payers about the TOT rules and regulations were less and a cause for the TOT services is more time consuming and tedious. Finally, the suggested effective remedies for turnover tax collection included: formulating policies and curriculums from elementary up to higher education’s, putting in place tough laws to check evaders, frequent taxpayer education and sensitization, putting in place of TOT to address public misconceptions or inaccuracies and providing information in a customer-focused way to improving the turnover tax payers awareness, performance, and compliance level on the rules and regulations of the taxation system.