ALEMU MEKURIA,2024-04-112024-04-112019-02http://10.194.1.109:8080/xmlui/handle/123456789/1481The studywas conducted to assess the challenge faced the Asella city administrationrevenueAuthoritywhilecollectingtaxfrom businesscommunity ofthecitywhicharecommonlyknownascategoryctaxpayer.Theresearcher believethatfindingsofthisstudycancontributeinenhancingthetaxrevenueof thecityadministrationand thegovernmentatlargebyexposing thecore problemsonthetaxcollectionactivitiessoastoenablingthemtoputtheireffort tosolvethoseobservedproblems.Toconductthestudytheresearcherused bothprimaryandsecondarydata.Althoughthedatawascollectedfrom various sourcetaxpayerandRevenueAuthorityemployeewerethemainsourceofdata forthestudy.Thestudyemployedstratifiedrandom samplingfortaxpayerand judgmentalsamplingforemployeeofrevenueauthority.Inordertopresentand analyzethedatainreliableandclearwaytheresearcherusedbothtableand percentagetosummarizethestudyfinding.Generallyfindingofthestudyreveals thatmostoftaxpayerespeciallyinthoseundercategorychasbeenfacing variousproblemsinrelationtotaxationsystem.Despitetaxpayerpositive attitudetowardthegeneralconceptionoftaxationmostofthesurveyedtax payerstatedthatwhattheyarepayingarebeyondtheircapacitytopaythat neithertheyhavenotrustintheemployeeofauthoritynormerelyoveralltax estimation.Thestudyconcludedthattheauthorityofthecityadministrationis being reluctantinmaking thetaxlow orprocedure,objective,transparent, understandabletotaxpayer.Thustheresearcherrecommendedtheresponsible taxauthorityshouldrevisetheirworkingsystem andpromotetransparencyso thattrustoftaxpayeronthetaxsystemwillgradualadvanceenThesis