Publisher: Centre For Social Science Research, Enugu

Factors Influencing Tax Compliance Attitude In Ethiopia: A Multivariate Analysis

Tilahun Aemiro Tehulu
KEYWORDS: Tax compliance, Taxpayers, Ethiopia.


The purpose of this paper is to empirically investigate how tax education and demographic factors (gender, age, education level, income level, and religion) influence tax compliance attitude in Ethiopia where tax mobilization is the lowest among most African countries. Ordered Logistic regression, one-way ANOVA, two samples and one sample T- test are used in this study in examining the determinants of tax compliance attitude. The results show that taxpayers in
Ethiopia particularly in Bahir Dar City Administration have high tax compliance attitude. Moreover, the univariate analysis revealed that the overall tax compliance attitude was not affected by gender, tax category, and age of the tax payer. However, the religion of the taxpayer is found to have a significant influence on tax compliance attitude. The ordered logistic regression result has also indicated that three variables namely educational background, religion and taxpayers’ knowledge regarding the role of tax in national development explain the variation in tax compliance attitude in Ethiopia. Other factors including age of the taxpayer, income and taxpayers’ knowledge about rights and responsibilities and offences and penalties are not important variables in explaining tax compliance attitude.

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