Factors Influencing Tax Administration Efficiency in Ethiopia: Taxpayers Perspective

Abstract

Efficient tax administration plays a crucial role in Ethiopia’s economic growth, the delivery of public services, and the sustainable mobilization of revenue. This study explores the factors that influence the efficiency of tax administration, focusing on taxpayers under the Ministry of Revenue and selected regional authorities. A quantitative method approach was employed, gathering data from 386 respondents through structured questionnaires of selected taxpayers. The results indicate that taxpayers generally view the system as efficient, particularly in areas such as service quality, fairness, staff expertise, and responsiveness. Nevertheless, challenges remain, especially in regard to the usability of digital services, clarity of tax laws, and trust in revenue transparency. Key factors that enhance efficiency include professional staff conduct, regular training, service quality, clear communication, and fair procedures. The study highlights the importance of adopting technology, developing human capital, promoting transparency, and building taxpayer trust to improve compliance and overall performance. These findings offer practical recommendations for policymakers and tax authorities seeking to strengthen revenue collection, boost public confidence, and support sustainable development in Ethiopia.