Abstract:
Tax collection plays crucial and significant role in raising revenue to the level
required for economic growth and development for both local as well as national
government. The main objective of this study was to examine the determinants of tax
collection performance on category B in case of Sheka zone revenue Department.
To achieve the objectives, descriptive and explanatory research design and mixed
(qualitative and quantitative) approaches were employed. To conduct this study
primary were gathered through self- administrated questionnaires, semi-structured
interview and secondary data from five (2019 to 2023) years Sheka zone revenue
department repots. The data was collected from 99 respondents of category B
taxpayers selected through stratified and simple random sampling techniques and an
interview conducted from 10 purposively selected tax employees. The gathered data
was analyzed by descriptive and inferential statistics through ordered logistic
regression model by using SPSS version, 27software. The finding of the study was tax
knowledge, tax compliance, simplicity of the tax system, fairness, organizational
strength and penalty have positive and significant effect on tax collection. On other
hand, tax evasion and political instability have negative effect on tax collection
performance. The researcher recommended that tax knowledge and tax compliance of
taxpayers, have a vital role on tax collection therefore, the Sheka zone revenue
department and each tax office should give emphasis on creating awareness of
taxpayers more than just doing before. Provide continues training to taxpayers that
reduce intentional or unintentional breaking of laws, wrong attitude of taxpayers and
reward loyal taxpayers. In addition, informing taxpayer’s obligation by using media
opportunities to improve their tax collection performance. Finally, further studies
should fill the gap by applying different research model to enhance the accuracy of
the result.
