Abstract:
The aim of this study was to investigate the major challenges and opportunities of tax reve
nue collection system in branch of federal revenue authority in Gambella town. Both simple
random and purposive sampling technique was employed. The study was conducted by taking
109 quetionary respondents selected randomly and 5 key informants purposively selected.
The mixed research design was employed to conduct the study through using quantitative and
qualitative data from both primary and secondary sources. The primary data were collected
from questionnaires received from respondents and interviews of tax officials . The secondary
data gathered from the region revenue bureau by way of reviewing documents. The collected
data was analyzed with descriptive statistics. The finding shows that, the major challenges of
Gambella revenues authority includes, lack of modernize tax collection system, corruption ,
poor customer service delivering, lack of well experienced, and work commitment staff,
absence of continuous tax education and training, In applicability of modern cash register
machine , the rapid turnover of directors. Moreover, the study identified factors such as the
peace in the region , investments expansions and VAT registration enforcement are the major
opportunities to increase the tax collection in the near future. Finally, based on the findings
possible recommendations are suggested, these includes modernizing the manual tax
collection system; support and follow up the revenues authority activity by government,
enforcing the applicability of cash register machine,the revenue office and the town
administration should work in collaboration with involvement of political leadership to
mobilize support and to reduce corruption in the tax collection process. Apart from this, it’s
better to give short term on job capacity building training and long term education for the
staff.
