Challenges And Opportunities Of Revenue Collection System:The Case Of TheBranch Of Fedral Revenue Authrity In Gambella Town.

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.