Abstract:
The aim of the study was to examine factors affect
fairness of taxation on category “B” tax payer’s in case of
Dawuro zone, Tercha City, SNNP of Ethiopia. 238 numbers of
sample respondents were selected from 526 number of total
category “B” taxpayers in study area. The finding shows that,
majority of the tax payers negatively perceived towards fairness
of their tax system due to high tax rates, unfair distributions of
tax burdens among tax payers compared with ability to pay,
unequal treatments of individuals by authority, tax payers have
little knowledge about tax system and complicated tax law and
bulky procedures makes tax payers does not easily understand
their tax system in the study area. In addition, the logistic
regression analysis shows that except general fairness all 8 tax
fairness aspects such as; exchange with gov.t, horizontal fairness,
vertical fairness, time-related equity and fairness, self-interest,
tax knowledge and tax complexity has significant effects on tax
fairness perceptions at 0.05% of confidence intervals.
