Role of a Cash Register Machine in Improving the Turn Over Tax Revenue in Wolaita Zone, Southern Ethiopia

Abstract

This study was conducted to examine the role of cash register machine to collect turn over tax in Wolaita Zone Sothern Ethiopia. It has  investigated to answer various factors (knowledge and skills, attitude and perception, tax evasion, audit follow up and administration cost) that affect turn over tax from the view point of both tax collectors and payers. To achieve the objectives of the study,both primary and secondary sources of data were used. Using stratified random sampling methods 108 Turn over tax payers were selected whereas10 tax experts purposively were selected from total population. The collected data through questionnaires were summarized and analyzed using both descriptive statistics and inferential statistics (multiple linear regression model) to investigate the predictors effect on Turn ove Taxe using EVIEWS 9.1 whereas qualitative data were trangulated to support the quantitative analyasis. The results indicated that turn over tax collection using the cash register machine has a positive effect on turn over tax and  independent variables (knowledge and skills, audit follow up, operational cost, and tax evasion) have a significant effect on turn over tax at 5% level of significance. However, perception and attitude has no significant effect on turn over tax revenue at 5% level of significance. Thus, knowledge of the turn over tax payer is significant to eradicate the tax evasion and can improve the efficiency of the authority but ministry of revenue need to work with regard to making adequate awareness through training and various media oulets. Besides this, strong audit follow up is a very significant component to increase turn over tax revenue. Regional revenue authority should be improved to design good and fast systems that can reduce the operation and maintenance cost of users.