CHALLENGES AND OPPORTUNITIES OF ADOPTING ELECTRONIC TAX PAYMENT SYSTEM IN ETHIOPIAN MINISTRY OF REVENUE

Abstract

This research focused on assessing the challenges and opportunities of adopting the E-tax Payment system in Ethiopian Ministry of Revenue (MOR). The study has employed a descriptive research design. In order to gather the required data questionnaire have been used. The study was conducted based on the data gathered from 49 employees of MOR and 213 taxpayers. Responses of survey data were analyzed using SPSS (V.20) software. The result of the study indicated that incorrect data entering into the system, didn’t get technical support on time, low level of internet connection, network failures and frequent power interruptions were found as a major challenges of adopting e-tax payment system. However, the cost of IT equipment and cost of the internet was not found as a barrier. The study also identified basic benefits that MOR and taxpayers could attain from the adoption of E-tax payment system such as speed up tax collection process, reduce transaction cost, improve transaction speed, provide timely information on payment, minimizes the risk of cash theft and embezzlement, increases operational efficiency, and create better relationship between taxpayers and tax office. The study recommends that MOR to facilitate proper and continuous training for both employees and taxpayers, create deep awareness about e-tax payment system, MOR should hire more qualified IT staff members, also MOR should work together with other concerned bodies such as Ethio-telecom, Ethiopian electric utility and so on to solve the challenges that hinders e-tax system.