Tax services quality and tax revenue performances:-a study on oromia regional government oromia tax revenue authority jimma branch tax revenue office

Abstract

Service quality is one of the critical success factors that influence the competitiveness of an organization. Users of public service, unlike consumers in the private sector, usually have little or no option to go elsewhere for services or to withdraw payment. Organizations that provide public services therefore need to take additional steps to ensure that services are of a high quality. The purpose of this paper was to investigate tax services quality and tax revenue performance Oromia regional government Oromia tax revenue authority Jimma branch tax revenue office. The sample size was 382 and the sampling technique used was convenient sampling. Self-administered survey questionnaire based on the modified 20 items of the service performance scale was used as instrument to collect primary data. The results of correlation analysis showed that all the five service quality dimensions were significantly correlated with tax revenue performance. The dimension that was highly correlated with tax revenue performance was responsiveness and assurance respectively followed by empathy, reliability, and finally tangibility was found to be the dimension that was least correlated with tax revenue performance. Multiple regression analysis was also performed and from the results the 68% for the model summary of the five service quality dimensions which indicated that service quality dimensions on aggregate are capable of explaining the variance in tax revenue performance. The ‘b’ coefficients for the all service quality dimensions were statistically significant. The findings suggest that the Oromia regional government Oromia tax revenue authority Jimma branch tax revenue office need to improve all the five dimensions of service quality. Finally, concerned officials of the branch should assess service quality satisfaction continuously to keep the services corresponded with customers’ point of view.