Tax Compliance Cost Burden and Tax Perceptions Survey in Ethiopia

This study attempts to estimate tax compliance costs and assess views of taxpayers on aspects of the tax system in Ethiopia. The study uses evidence mainly from a survey of both formal and informal businesses in Addis Ababa and four major cities (Adama, Hawassa, Mekele, and Bahir Dar) in the four largest regional states. The survey covered 1003 formal businesses and 499 informal businesses. Survey questionnaires were informed by the results of four focus group discussions conducted in Addis Ababa and Adama. The findings of the study are expected to offer tax policy makers and tax administrators an opportunity to pinpoint specific problems to help reduce the cost of complying with tax policies and procedures, thus improving the revenue performance and also the efficiency and business-friendliness of the tax system. The report is organized in four sections. The first part presents an overview of the Ethiopian tax system and recent reform initiatives; second section discusses the research objectives and the methods employed. Section three presents results of the survey while section four presents conclusions and recommendations.

Bibliographic Details

Main Author:	World Bank Group
Format:	Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, DC 2016-03
Subjects:	TAX RESEARCH, HOLDING, LIABILITY, ACCOUNTING, CHECKS, PROFIT MARGINS, DEPOSITS, EXCISE TAXES, REGULATORY PRACTICES, PROPERTY TAX, ADDED TAX, USE TAX, STOCK, VALUATION, WITHHOLDING TAX, MICRO-ENTERPRISES, TAX COMPLIANCE COSTS, INTEREST, GIFTS, TAX PREPARERS, GOVERNMENT REVENUES, EXCHANGE, OPTION, BANKING SYSTEM, CASH FLOW BENEFITS, DEVELOPING COUNTRIES, BANK ACCOUNT, BLACK MARKET, EXPORTERS, REVENUES, SALES TAX, TAX COMPLIANCE, BONDS, CAPACITY BUILDING, TAX SYSTEMS, TRADE SECTOR, TAX, INCOME TAX, TAXABLE INCOME, TAX LEGISLATION, INFLATION, PENSION, INSTRUMENTS, DISPUTE RESOLUTION, SMALL BUSINESS, INTERNATIONAL FINANCE, BENEFICIARY, CURRENCY, TAX AUDITS, TELECOMMUNICATIONS, PERSONAL INCOME, TAX REGIME, CONVERSIONS, TAX REGULATIONS, SOCIAL INSURANCE FUND, TAX LIABILITIES, SALES TAXES, OPTIONS, VALUE ADDED TAX, MARKETS, SMALL” BUSINESSES, RETURN, INTERNATIONAL DEVELOPMENT, TAX BASE, SETTLEMENT, PUBLIC FINANCE, CONSUMPTION TAX, COMPETITIVE MARKET, LOANS, TAX REVENUES, SETTLEMENT SYSTEM, COMPLIANCE COST, NATIONAL TREASURY, INVENTORY, LEGAL FRAMEWORK, FINANCE, BANK POLICY, TAX POLICIES, BANK DEPOSITS, TAXES, TAX OFFICES, MICRO ENTERPRISES, EXPENDITURE, PROFIT MARGIN, TRANSACTIONS, INFRASTRUCTURE INVESTMENT, TURNOVER TAX, TAX FORMS, INTERNATIONAL STANDARDS, EQUITY, INCOME TAXES, TRANSACTION, TAX CREDIT, GOOD, PRIVATE BANK, TAX RATE, FRAUD, INTERNATIONAL TRADE, OWNERSHIP STRUCTURE, MICRO –ENTERPRISES, COMPLIANCE COSTS, TURNOVER, TAX LAWS, MOBILE PHONE, RETURNS, TAX REGIMES, TRANSITION COUNTRIES, GOVERNMENT REVENUE, EXPENDITURES, EXCISE TAX, PROPERTY, TAX EVASION, CORPORATE TAXES, TAX RATES, TAX BASIS, ACCOUNTANT, TAX LIABILITY, MARKET, FOREIGN EXCHANGE, PAYROLL TAXES, TREASURY, TAX REVENUE, BANK ACCOUNTS, LEVY, MARKET STRUCTURES, REGULATORY CONSTRAINTS, SHAREHOLDERS, INSURANCE, TAXATION, PERSONAL INCOME TAX, ECONOMIC DEVELOPMENT, TAX LAW, TAX ACCOUNTING, GOODS, SECURITY, LEGAL SYSTEM, LOSS STATEMENT, INVESTMENT, SHARE, INVESTMENT CLIMATE, TAX SYSTEM, POVERTY, TRANSITION COUNTRY, TAXPAYERS, BUSINESS TAX, TAX ADMINISTRATION, REVENUE, TAX POLICY, PROFIT, LENDING, TAX REPORTS, EMPLOYMENT TAX, DEDUCTIONS, CHECK, PERSONAL INCOME TAXES, TAX REFORM, BANK BONDS, PENSION FUND, TAX RETURN, EXCHANGE RATE, INSTRUMENT, PROFITS, LIABILITIES, TAX RETURNS, SOCIAL INSURANCE FUNDS, SMALL BUSINESSES, CASH FLOW, WITHHOLDING TAXES,
Online Access:	http://documents.worldbank.org/curated/en/2016/06/26440812/tax-compliance-cost-burden-tax-perceptions-survey-ethiopia https://hdl.handle.net/10986/24792
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