The turnover tax system, assessment and structure in ethiopia: From the perspective of different theory of taxation

Abstract

No one escape from tax and death Turnover tax is a type of indirect tax which is imposed on goods supplied and or services rendered in the country by those who are not required to register for VAT but who supply goods and services in the country. It is a charge levied and collected by the government on the taxable turnover of a taxable transaction the aim of this research paper is aims to give insight the to understand the origin and development of the Ethiopian turn over tax system, to give insight for the current turnover tax system, and to examine the countries turnover tax system to that of the existing tax theories. To achieve the objective of the study, review of literature-based approach was employed.  The paper concludes that even if the countries tax system and the structure show good progressive from year-to-year but still the performance of the assessment and collection rate of especially the turnover tax system is very weak. Different problems are raised for the tax system why it is low? however this paper indicates that there is suitable ground and huge potential for the collection and the administration of turnover tax in the country.