Factors affecting fairness of Taxation on Category “B” Taxpayers in Tercha City, Dawuro zone, SNNP of Ethiopia

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.