CHAPTER ONE

Introduction 1.1 Background of the Study

Organizations are established to accomplish their goals and objectives effectively and efficiently. They are concerned about both their own effectiveness and the role they play in the society. It is fair to realize that distributed the resource equally and growth depends on their ability to adapt the changing environment through strategic thinking which is called organizational development or strategic planning. Ethiopian revenues and customs authority Akaki Kality sub-city small tax payer‟s branch office is one of revenues collecting branch. After tekmet/October,2003 EC Addis Ababa city

administration of revenues authority agreed with the federal democratic republic of Ethiopian revenue and customs authority in order to work together to satisfy the citizen need. Even though the collected money is totally delivered to Addis Ababa city administration of revenues authority as usually previously done. But the main reason to works together with Ethiopian revenues and customs authority is adapted the structure and technical skill transferring in the process of collecting tax so in Addis Ababa each of 10 sub-city is administrated by Addis Ababa city administration of revenues authority and the collected tax from each of 10 sub-city delivered to Addis Ababa city administration but they apply the structure and techniques of Ethiopian revenues and customs authority. Akaki Kality sub-city small tax payers branch office is administrated 11 Wordas but in this time only 8 are functional. This small tax payers branch office has 185 employees and all are intended

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by performed different task, like collecting the tax of house and land, turn over tax, value add tax (in each of month),pension and etc. In this organization for long years different works are performed by one person but now this organization had 6 fundamental sectors:The 1st sector task is tax collecting and levied. The 2nd sector task is tax audit. The 3rd sector task is financial administration. The 4th sector task is information desk technical. The 5th sector task is related to customer service. The 6th sector task is keeping collecting tax by legal right.

1.2 Statement of the problem
When an institution was established, it has its own vision, mission and objectives, that directs to give the expected quality service without corruption, with in transparency and in a responsible way which can be trust between every citizen and government and also to satisfy the needs and interest of the citizen effectively and efficiently. Thus, it is expected from the leaders to keep the goal and objectives of the tax system and lead accordingly and honestly. Therefore, the collection of tax is supposed to carry out all its goal and objectives, which means their development is achieved. But, because of many reasons may it esteem from the citizen, the government policy or agency, lack of technology and ethics of tax worker the development plan are not fulfilled. So there are
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various problems that cause customer service dissatisfaction that was clearly described and listed below as follows: Prioritization of personal interest rather than community serving or lack of patriotism.  Unbalanced or unfair tax levid on citizen without studied the income of commercial center or by estimation.  Lack of awareness and understanding of the need of tax.  The problem of modern technology and controlling system.  Implementing directly developed country tax system rather than designing a system that considered and related with our commercial.  Shortage of qualified workers and absence of necessary department.

1.3 Research Question
This study was mainly expected to find the right answer (responses) to the following questions:1. What are the main problems of customer dissatisfaction in the process of tax collection? 2. What are the main problems of cash registrar machine? 3. What are the main problems of quality service of akaki kality sub-city small tax payer‟s branch office? 4. Does akaki kality sub-city small tax payer‟s branch office has enough man power? 5. How was the overall performance of akaki kality sub-city small tax payer‟s branch office gives satisfied and quality service for the tax payer?

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1.4 Objectives of the study 1.4.1 General Objective
The general objective of this study was to discover and identify the reasons (causes) that attribute to customer dissatisfaction from the service of Akaki Kality sub-city small tax payers branch office.

1.4.2 Specific objective
- To know the process of tax collection and service of akaki kality sub-city small tax payer‟s branch office. - To know the problems seen in both tax payer and collector. - To know in which service area dissatisfy of tax payers.

1.5 Significance of the study
The study is important to government, citizens, and to any interested party in the following ways. 1. It shows the service giving performance of akaki kality sub-city small tax payer‟s branch office. 2. It states the problem of tax collection and the distribution of tax collection. This research study will solve the problem seen in both tax payer and collector that will help Ethiopian revenue and customs authority and akaki kality sub-city small tax payer‟s branch office to enable to give quality service in the future.
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selected by simple random 5 .1 Research design:-in order to maximize the achievement of the research. The town is one of the sub towns of the capital city of Addis Ababa. few limitations the researcher faced can be listed as: Not getting some necessary information.7 Research methodology 1. Even though administrated by low level tax payer branches of bearue.  The new structure of the organization changing of employee‟s position and the new employees of the organization are not well known about the past document of the organization.7.6 Limitation In conducting this study.  Because of shortage of time and financial constraints the collection of tax in this subcity is classified in each woreda.2 Sampling technique:. especially secondary source about the organizations. 1.1. Because of the number of branch if will faced many things. I have used exploratory method of design that assisted the research to dig out the root causes of dissatisfied tax payers within services of akaki kality sub-city small tax payer‟s branch office.7. 1. In this research work involved 50 respondents from tax payers. Further more both qualitatively and quantitatively approaches were included which in fact they had great role in acquiring the necessary primary data from targeted respondents. It is found 25 KM away from the center of Addis Ababa to the South. Akaki kality is the most industrialized area of Ethiopia.This study was conducted in Addis Ababa specifically Akaki Kality area.

1. In this interviews method. the primary data is obtained by using personal interview and questioner methods. A.3 Method of data collection:.  It was possible to collected supplementary information. there were about 6 respondents from selected workers of Akaki Kality sub-city small tax payers branch office the sampling technique here was purposive sampling technique.  Miss interpretation of the answer for the questions was easily avoided. The reasons behind used interview method included –  More information in great depth can be obtained. the researcher select the respondents from those the whole tax payer and worker of Akaki kality sub-city small tax payer‟s branch office. Interview Method Interview method was one of the methods used by the researcher to collected data from workers of Akaki Kality sub-city small tax payers branch office.The data needed were obtained from the primary sources.  If any resistance happened from respondent it enabled the interviewers tackled by their own skill. 6 .7. This technique enabled the research to selected respondent that he/she thinks best fit to the questions. The selection was made by using purposive sampling technique for interviewed the worker and simple random sampling for respondents of tax payer in akaki kality sub-city.sampling and 6 Akaki Kality sub-city small tax payers branch office workers was selected by purposive sampling technique. For both methods.

I have also to review the literature with regard to the topic of research. Finally in the fourth chapter conclusion and recommendation will be followed. 7 . 1. The secondary sources and observation were also means in acquiring relevant data.  The respondents feel free to write their response on the paper. The third chapter presents the analysis and interpretation of the study. The first chapter contains back ground of the study. The reasons behind used this method was: Enabled the researcher to collect the data from large number of respondents.B.here the 50 respondents was selected from different trade in akaki kality sub-city by simple random sampling technique. In this method the researcher used tax payers of Akaki kality sub-city small tax payer‟s branch office . significance of the study and research methodology.8 organization of the paper The paper comprises four chapters. statement of the problem. Questionnaire Method Questionnaire Method was the other method that i used in this study. The second chapter contains review of earlier studies related to the topic of the study. Generally I tried to improve repeatedly all the techniques for the better achievement of the outcome. objective of the study. Journals were in use.

15 Birr deduction fee . Employers have an obligation to withhold the tax from each payment to an employee.00 47.50 235.000 Deduction (in Birr) Over birr 0 151 651 1.1.00 412.Personal Income Tax = 500 Birr x 10% tax rate = 50 Birr . and pay the Tax Authority the amount withheld during each calendar 8 .1 Direct Taxes 2.350 3.1 Tax on Income from Employment / Personal Income Tax Every person deriving income from employment is liable to pay tax on that income at the rate specified in Schedule „A‟as follows: Employment Income (per month) Tax rate(in %) To Birr 150 650 1.550 5.CHAPTER TWO LITERATURE REVIEW 2. Major Types of Taxes existing in Ethiopia 2.000 Exempt threshold 10% 15% 20% 25% 30% 35% 15.401 2.1 personal income tax Example: Computation of Personal Income Tax Monthly Salary of 500.50 117.Deduction = 50 Birr .400 2.50 662.551 Over 5.351 3.00 Birr .Tax payment = 35 Birr Employment income shall include any payments or gains in cash or in kind received from employment by an individual.00 Table 2.

received for services rendered in the exercise of their duties by diplomatic and consular representatives. provident fund and all forms of retirement benefits contributed by employers in an amount that does not exceed 15% of the monthly salary of the employee. provided that such payments are made pursuant to specific provisions of the contract.       Payments made to a person as compensation or a gratitude in relation to personal injuries suffered by that person or death of another person.(Ibid) The following categories of income shall be exempt from payment of personal income tax:  Income from employment received by casual employees who are not regularly employed provided that they do not work for more than one month for the same employer in any twelve months. instead of being deducted from the salary or wage of the employee. Allowances in lieu of means of transportation granted to employees under contract of employment.   Pension contribution. income attributable to the months of Nehassie and Pagume shall be aggregated and treated as the income of one month. is paid by the employer in whole or in part. In applying the procedure. Amounts paid to employees in reimbursement of traveling expenses incurred on duty. the amount so paid shall be added to the taxable income and shall be considered as part thereof. 9 . Subject to reciprocity. (ECC and EBDSN . Hardship allowance. Amounts of travelling expense paid to employees recruited from elsewhere than the place of employment on joining and completion of employment or in case of foreigners travelling expenses from or to their country. income from employment. and other persons employed in any Embassy and who are national of that state and bearers of diplomatic passports.  Allowance paid to members and secretaries of board of public enterprises and public bodies as well as to members and secretaries of study groups set up by the Federal or Regional Government.month.2005.p.3) If the tax on income from employment. Amounts paid by employers to cover the actual cost of medical treatment of employees.

00 7950. For unincorporated or individual businesses the business income tax ranges from 10% . and maintaining that business income to the extent that the expenses can be proven by the taxpayer.00 Table2.950 Birr deduction fee .000 Tax Rate(In %) To Birr 1800 7800 16800 28200 42600 60000 Deduction (In Birr) Exempt threshold 10% 15% 20% 25% 30% 35% 180.1.00 2520.500. Corporate businesses are required to pay 30% flat rate of business income tax.725. (Ibid) The following expenses shall be deductible from gross income in calculating taxable income: 10 . securing.00 Birr . which shall be drawn in compliance with the generally accepted accounting standards.675 Birr .00 4950.2 Business Profit Tax This is the tax imposed on the taxable business income / net profit realized from entrepreneurial activity.7.00 1410.500 Birr x 35% tax rate = 24.00 Birr In the determination of business income subject to tax in Ethiopia. Unincorporated or individual businesses are taxed in accordance with the following schedule below: Schedule ‘c’ Taxable business income/ Net profit per year Over Birr 0 1801 7801 16801 28201 42601 Over 60.35%.Business Profit Tax = 70.675 Birr . Income of persons employed for domestic duties. 2.00 570.2 Business profit tax Example: Computation of business profit tax Business Net Profit per year/Taxable Income = 70. deductions would be allowed for expenses incurred for the purpose of earning.Tax payment = 16.Deduction = 24. Taxable business income would be determined per tax period on the basis of the profit and loss account or income statement.

by international treaty or by an agreement made. (Ibid) 11 . Premiums payable on insurance directly connected with the business activity. such as the direct cost of manufacturing. Expenses incurred in connection with the promotion of the business inside and outside the country. importation. subject to the limits set by the directive issued by the Minister of Revenue. as the case may be shall have rendered its final decision. selling and such other similar costs.      The direct cost of producing the income. wages or other emoluments to the children of the proprietor or member of the partnership shall only be allowed as deduction if such employees have the qualifications required by the post. the Appeal Commission or a Court. The following categories of income would be exempted from payment of business income tax:    Awards for adopted or suggested innovations and cost saving measures.000 Birr. Penalty for late payment: A taxpayer who fails to pay tax liability on the due date is subject to:   A penalty of 5% of the amount of unpaid tax on the first day after the due date has passed. the taxpayer is liable for a penalty in the amount of 10% of the understatement or 50% if the understatement is considered substantial. Penalty for understatement of tax:  If the amount of tax shown on a declaration understates the amount of tax required to be shown.  The penalty shall continue to apply until. purchasing. Public awards for outstanding performance. Commissions paid for services rendered to the business. General and administrative expenses connected with the business activity. The understatement is considered substantial if it exceeds 25% of the tax required to be shown on the return or 20. Sums paid as salary. Income specifically exempted from income tax by the law in force in Ethiopia. and An additional 2% of the amount of tax that remains unpaid on the first day of each month thereafter.

00 Birr .500 Birr -2. 2.820 Birr deduction fee . When the construction of a rental building is completed or when the building is rented. 000. in the event the sub-lessor fails to pay. the amounts received attributable to the lease of furniture and equipment would be included in the income and taxed.680 Birr Conditions of payment:   The owner of a building who allows a lessee to sub-lease is liable for the payment of the tax for which the sub-lessor is liable.Rental Income Tax = 38. The payers are required to withhold the tax and account to the Tax Authority.3 Tax on Income from Rental of Buildings This is the tax imposed on the income from rental of buildings. the owner and the builder are required to notify the administration of the Kebele in which the building is situated about such completion and the name.2.Deduction = 9.500 Birr . If the taxpayer leased furnished quarters. (Ibid) 12 . address.Tax payment = 6.4 Tax on Interest Income on Deposits Every person deriving income from interest on deposits shall pay tax at the rate of 5%.  The Kebele administration has the obligation to communicate the information obtained to the appropriate tax authority. and tax identification number of the person or persons subject to tax on income from rental of building.1.000 Birr x 25% tax rate = 9.1. (Ibid) Example: Computation of Rental Income Tax Net profit per-year/Taxable Income 38.

the recipient shall pay tax on the royalty income within the time limit set out.g. register or approve the transfer before ascertaining that the payment of the tax has been duly effected. (Ibid) 2.2. artistic or scientific work including cinematography films. (Ibid) 13 . The withholding agent who effects payment shall withhold the foregoing tax and account to the Tax Authority. and films or tapes for radio or television broadcasting. and office at the rate of 15%. factory.1. Gains obtained from the transfer of building held for residence shall be exempted from tax provided that such building is fully used for dwelling for two years prior to the date of transfer. Royalties income shall be liable to tax at a flat rate of 5%.7 Tax on Income from Games of Chance Every person deriving income from winning of games of chance (e.1. Shares of companies at the rate of 30%. (Ibid) 2. or the right to use.5 Dividend Income Tax Every person deriving income from dividends from a share company or withdrawals of profits from a private limited company shall be subject to tax at the rate of 10%. office. lotteries.6 Tax on Income from Royalties „Royalty income‟means a payment of any kind received as a consideration for the use of.1. any copyright of literary. Any person authorized by law to accept. Such income is taxable at the following rates:   Building held for business. except for winning of less than 100 Birr. (Ibid) 2.. Where the payer resides abroad and the recipient is a resident. The payer shall withhold or collect the tax and account to the Tax Authority.8 Tax on Gains of Transfer of Certain Investment Property This is the tax payable on gains obtained from the transfer (sale or gift) of building held for business.1. and other similar activities) shall be subject to tax at the rate of 15%. The withholding agent shall withhold or collect the tax and account to the Tax Authority. and shares of companies. register or in any way approve the transfer of capital assets shall not accept. factory. tombolas.

o 10% on others. Supply of national or foreign currency and of securities. and the rendering of medical services. Permits and license fees. the following would be exempted:           Sale or transfer of dwelling used for a minimum of two years.2. Supply of prescription drugs specified in directives issued by the relevant government agency. for services rendered locally: o 2% on contractors.1 Turnover Tax The Turnover Tax would be payable on goods sold and services rendered by persons not registered for Value Added Tax. the seller is principally accountable for the payment of the tax. Hence. Supply of goods and rendering of services in the form of humanitarian aid. Rendering of financial services. kerosene and water. or the lease of a dwelling. This type of income is subject to tax at a flat rate of 15% of the annual gross income. In accordance with the Turnover Tax Proclamation No. (Ibid) 2. 14 . Rendering by religious organizations of religious or other related services.2 Indirect Taxes 2. The rate of Turnover Tax is   2% on goods sold locally. Supply of electricity. The base of computation of the Turnover Tax is the gross receipts in respect of goods supplied or services rendered. Rendering of educational services provided by educational institutions. tractors and combine-harvesters.2.9 Tax on Income from Rental of Property The taxable income under this category is income derived from casual rental of property (including any land. 308/2002. building.1. A person who sells goods and services has the obligation to collect the Turnover Tax from the buyer and transfer it to the Tax Authority. or moveable asset) not related to a business activity. Provision of transport. grain mills.

or nature of the principal taxable activity or activities of the person. no time limit provided in any other law shall bar the assessment of the tax by the Tax Authority. or if the tax payer fails to submit same when requested by the Authority. place of business. or if no books of account and supporting documents are maintained. it appears that a person has understated his tax obligation. If. address. the Authority can issue an additional assessment.  A presumptive turnover tax would be payable by Category “C”taxpayers who are not required to keep records. In case where the taxpayer has not declared his income or has submitted a fraudulent declaration.  If the Tax Authority fails to assess the tax and notify the taxpayer of the amount still due within five years from the date of declaration and payment of the tax by the taxpayer the tax so paid would be final and conclusive. Notification of Changes A registered taxpayer is required to notify the Tax Authority:  Any change in the name. Supply of books. the Tax Authority would assess the tax on the basis of information available. constitution. Assessment of the Tax   If after review by the Tax Authority. the books of account are unacceptable to the Tax Authority. The base for the presumptive turnover tax would be the total turnover used as base for the income tax. for any reason.  Supply of goods or services by a workshop employing disabled individuals (if more than 60% of the employees are disabled).   The assessment made would be prepared in an assessment notification and be delivered to the taxpayer. If the Authority makes an additional assessment and within 30 days of notice the person assessed does not pay the additional assessment or appeal the assessment the person is in default. 15 .

 Any change of address from which. commits an offence and in addition to any penalty may be prosecuted and be subject to a term of imprisonment of not less than five (5) years. given in Excise Tax Proclamation No. Obligations of the taxpayer:  Maintaining books of accounts and supporting documents in accordance with proper accounting principles and in a manner acceptable to the Tax Authority.2.2005. up to 25% of such amount. 000 Birr for the first month in which no return is filed. 307/2002. The interest rate is set at 25% over and above the highest commercial banks lending interest rate that prevailed during the preceding quarter.p. 16 .2 Excise Tax It is believed that this tax should be imposed on luxury goods and basic goods. which are demand inelastic. insurance and freight costs. It is also believed that imposing the tax on goods that are hazardous to health and which are causes to social problems will reduce the consumption thereof. The base of computation of Excise Tax is the cost of production for goods produced locally. or name in which. where as for goods imported the base of computation would be the cost of production. If any amount of tax is not paid by the due date. a taxable activity is carried on by the registered person.12) 2.(Ibid) Rate of Excise tax: The excise tax would be imposed on goods imported or either produced locally in accordance with the following schedule. The penalty is limited to 50. A person who fails to file a timely return is liable for a penalty equal to 5% of the amount of tax underpayment for each month (or portion there of) during which the failure continues. Tax Evasion A person who evades the declaration or payment of tax. the person liable is obliged to pay interest on such amount for the period from the due date to the date the tax is paid. with in 21 days following such change. (ECC and EBDSN .

or in the case of perishable goods. with in 5 days of the change occurring. constitution. Notification of Change Every taxpayer should notify the Tax Authority of:   Any change in the name. address. Immediately communicate to the Tax Authority the type and address as well as the commencement and termination date of his business.2005. It is collected on business transactions and imports. Made by a taxable person. A taxable person can be an individual. VAT is payable if they are:     Supplies made in Ethiopia.2.(Ibid) 2. as long as such a person is required to be registered for VAT. place of business. Any change of address from which. Regarding goods imported the Tax Authority can sell such goods where the tax in respect of them is not paid within six months from the day of deposit within the premises of government warehouse. Made in the course or furtherance of a business. Pay in full the tax due within 30 days from the date of termination where such business is terminated. 17 .15) Most business transactions involve supplies of goods or services. Are not specifically exempted or zero-rated.    Comply fully with the requirements of inspection of his premises by the delegates of the Tax Authority. in a form which would be supplied by the Authority. firm. company. or name in which. a taxable activity is carried on by the taxpayer. Submit every 30 days to the Tax Authority.p. a declaration containing the necessary information for the proper collection of the tax. or nature of the principal taxable activity or the activities of the person.3 Value Added Tax (VAT) VAT is a tax on consumer expenditure. (ECC and EBDSN .

Registration procedure:   A person applying to register for VAT is required to do so in such a form as is established by the implementation directives issued by the Ministry of Revenue. Every import of goods. and on all tax returns and official communications with the Authority. if different from the legal name. during that period. Amount of the taxable transaction. Amount of the excise on excisable goods. 18 . and the registered. taxable transactions the total value of which exceeded 500. Taxpayer identification number of the registered person and the purchaser.The Value Added Tax would be levied at the rate of 15% of the value of:    Every taxable transaction by a registered person. A person who carries on taxable activity and is not registered is required to file an application for VAT registration with the Authority if:   At the end of any period of 12 calendar months the person made . When a person carrying out taxable transactions files an application to be registered for VAT.  A person registered for VAT is required to use his taxpayer identification number on all VAT invoices.000 Birr. or At the beginning of any period of 12 calendar months there are reasonable grounds to expect that the total value of taxable transactions to be made by the person during that period will exceed 500. There is a VAT invoice prepared by the Ministry of Revenue containing the following information:        Full name of the registered person and the purchaser. Name of the goods shipped or services rendered. other than an exempt import.000 Birr. the Authority is required to register the person in the VAT register. and Import of services. and to issue a certificate of registration within 30 days of the registration. Number and date of the VAT registration certificate. Person‟s trade name.

 Where a person who is not registered for VAT issues a tax invoice – a penalty of 100%of the tax which is indicated in the tax invoice and is due for transfer to the budget but has not been transferred. and  Where a person fails to maintain records required – 2. but not later than 5 days after the transaction. and Serial number of the VAT invoice. 19 . Administrative Penalties: The following penalties are imposed for violations of the VAT Proclamation:  Where any person engages in taxable transactions without VAT registration where VAT registration is required – 100%of the amount of tax payable for the entire period of operation without VAT registration.  Where any person issued incorrect tax invoice resulting in a decrease in the amount of tax or increase in accredit or in the event of the failure to issue a tax invoice –100%of the amount of tax for the invoice or the transaction. Copy of all tax invoices issued by the person. Issue date if the VAT invoice.(Ibid) Record Keeping Requirement: A registered person or any other person liable for VAT under the proclamation shall maintain for 10 years in Ethiopia:      Original tax invoices received by the person. and Any other records as may be prescribed by the Minister of Revenue by directive. The registered person is required to issue the VAT invoice to the purchaser of goods or services upon the supply or rendering.   Sum of the VAT due on the given taxable transaction. Customs documentation relating to imports and exports. Accounting records.000 Birr for each month or portion thereof that the failure continues.

organizations. 20 . Import or supply of books and other printed materials. Permits and license fees. the person liable is obliged to pay interest on such amount for the period from the due date to the date the tax is paid.       Supply of electricity. Supply of goods or services by a workshop employing disabled individuals if more than 60 % of staff are disabled. Goods imported by the government. and water. as well as import of goods transferred to state agencies of Ethiopia and public organizations for the purpose of rehabilitation after natural disasters. as well as the following types of imports of goods are exempt from payment of VAT:         Sale.000 Birr for the first month (of portion thereof) in which no return is filed. institutions or projects exempted from duties and other import taxes to the extent provided by law or by agreement.A person who fails to file a timely return is liable for a penalty equal to 5% of the amount of tax underpayment for each month (or portion thereof) during which the failure continues. Provision of transport. rendering of medical services. If any amount of tax is not paid by the due date. The following types of supplies of goods (other than by way of export) or rendering of services. or child care services for children at pre-school institutions. Rendering of financial services. kerosene. Import or supply of prescription drugs specified in directives issued by Minister of health. Import of gold to be transferred to the National Bank. Rendering of religious organizations or church services. industrial accidents. other than services rendered for a fee or commission. and catastrophes. up to 25% of such amount. Educational services provided by educational institutions. The interest is set at 25% over and above the highest commercial lending interest rate that prevailed during the preceding quarter. The penalty is limited to 50. Supply/import of national/foreign currency and of securities. Supplies by the post office authorized under the Ethiopian Postal Services Proclamation. transfer or the lease of a used dwelling. Supply of goods and rendering of services in the form of humanitarian aid.

Category “A” Taxpayers This category of taxpayers includes: a) Any company incorporated under the laws of Ethiopia or in a foreign country. Payment of duties and taxes according to the preferential tariff rate where goods are imported from the preferred country.(Ibid) 2. 21 . Documents of title to property.4 Categories of Taxpayers Taxpayers are classified into the following three major categories: 1. Security deeds. cooperative or any other form of association. Lease. Power of attorney. including sub-lease and transfer of similar rights. Award. Collective agreement.2.3 Stamp Duty The following instruments shall be chargeable with stamp duty:           Memorandum and articles of association of any business organization. Contract and agreements and memoranda. Notaries acts. and accepted by the customs office. Warehouse bond. Contract of employment. 2.4 Customs Duty Any good imported or exported would be subject to:    Payment of duties and taxes according to the tariff of Harmonized Commodity Description and coding system. Payment of duties and taxes at the rate in force on the day the declaration of the goods are presented to.2. Bonds.

In addition. a balance sheet and a profit and loss statement and the following details: a) Gross profit and the manner in which it is computed. Category “C” Taxpayers Unless classified in Categories “A” and “B”.(Ibid) 2.2005.(Ibid) 3. and d) provisions and reserves. any business having an annual turnover of over Birr 100. at the end of the year. Category “B” Taxpayers Unless already classified in category “A”.p. these taxpayers should register with the Tax Authority the type and quantity of vouchers they use before having such vouchers printed. Sometimes the term customer and consumer are confusing. c) depreciation expense. those businesses whose annual turnover is estimated up to Birr 100. a customer is a stakeholder of an organization who provides payment in exchange for the offer provided to him by the organization with the aim of fulfilling a need and to maximise satisfaction.000 or more. This category of taxpayers should submit to the Tax Authority profit and loss statement at the end of the year. Any printing press before printing vouchers of taxpayers shall ensure that the type and quantity of such vouchers is registered with the Tax Authority. In other words.5 Customer satisfaction Those who buy the goods or services provided by companies are customers. b) general and administrative expense.27) 2.000 are classified under this category of taxpayers. A customer can be a 22 . Category “A“ taxpayers are required to submit to the Tax Authority.000 would be classified under Category “B” taxpayers.b) any other business having an annual turnover of Birr 500. (ECC and EBDSN .

2009. 1988. and after their studies of several definitions they defined customer satisfaction as “customer satisfaction is identified by a response (cognitive or affective) that pertains to a particular focus (i. 2009. “One man‟s meal is another man‟s poison.consumer. which is a sign of customer satisfaction. 15) This definition is supported by some other authors. I. but a consumer may not necessarily be a customer. 789). or it can be the state of being happy with a situation. Satisfaction can also be a person‟s feelings of pleasure or disappointment That results from comparing a product‟s perceived performance or outcome with their Expectations (Kotler & Keller. satisfaction could be the pleasure derived by someone from the consumption of goods or services offered by another person or group of people. Satisfaction varies from one person to another because it is utility. 204) hence considering satisfaction as anoverall post-purchase evaluation by the consumer” (Fornell. 34. who think that consumer‟s level of satisfaction is 23 . Another author explained this difference. post-consumption)”. 11). Customer satisfaction is defined by one author as “the consumer‟s response to the evaluation of the perceived discrepancy between prior expectations and the actual performance of the product or service as perceived after its consumption” (Tse & Wilton. a purchase experience and/or the associated product) and occurs at a certain time (i. p.e.e. 1992.” an old adage stated describing utility. (Giese & Cote. 2000.e. Client happiness. a customer is the person who does the buying of the products and the consumer is the person who ultimately consumes the product (Solomon. p. is and has always been the most essential thing for any organization. As a matter of fact. p. Some authors stated that there is no specific definition of customer satisfaction. p. post-purchase.) When a consumer/customer is contented with either the product or services it is termed Satisfaction. p. thus highlighting the fact that it is sometimes very difficult to satisfy everybody or to determine satisfaction among group of individuals.

2009). p. 364). p. there is no specific definition of customer satisfaction since as the years passes. 6) in his studies. It is factual that. and what they want is to ask them” this applied to the informal measures (Levy. p. • Informal measures like reading blocs. different authors come up with different definitions. The National Business Research Institute (NBRI) suggested possible dimensions that one can use in measuring customer satisfaction. Levy (2009.. According to Schiffman & Karun (2004) Customer satisfaction is defined as “the individual‟s perception of the performance of the products or services in relation to his or her expectations” (Schiffman & Karun 2004. 6. 2009. Measuring customer satisfaction could be very difficult at times because it is an attempt to measure human feelings. talking directly to customers.determined by his or her cumulative experience at the point of contact with the supplier (Sureshchander et al. 2002.g:24 . p. NBRI. In a nutshell. 14).customer satisfaction could be the pleasure obtained from consuming an offer. Customer satisfaction has also been defined by another author as the extent to which a product‟s perceived performance matches a buyer‟s expectations (Kotler et al. and disadvantageous because the company will have to collect this information from each customer (NBRI.. p. suggested three ways of measuring customer satisfaction:• A survey where customer feedback can be transformed into measurable quantitative data: • Focus group or informal where discussions orchestrated by a trained moderator reveal what customers think. 2009). Asking each and every customer is advantageous in as much as the company will know everyone‟s feelings. It was for this reason that some existing researcher presented that “the simplest way to know how customers feel. 2002. e. 8).

researchers have developed a rich body of literature focusing on this antecedents and consequences of this type of customer satisfaction at the individual level (Yi. present and future performances. 1980 ) until present date. et al. customer satisfaction is viewed as a post-choice evaluation judgement of a specific purchase occasion (Oliver. Cumulative customer satisfaction is an overall evaluation based on the total purchase and consumption experiences with a product or service over time.• Quality of service • Innocently • Speed of service • pricing • Complaints or problems • Trust in your employees • The closeness of the relationship with contacts in your firm of services needed clients‟ minds • Other types • Your positioning in There exist two conceptualizations of customer satisfaction. (Fornell. It is the cumulative customer satisfaction that motivates a firm‟s investment in customer satisfaction. 2000). Andreassen. Following the transaction specific.. transaction-specific andcumulative (Boulding. 25 . 1992. 1993. Johnson &Fornell 1991) This is more fundamental and useful than transaction specificity customer satisfaction in predicting customer subsequent behaviour and firm‟s past. 1990).

which could evoke satisfaction or dissatisfaction on the part of the user. p. 2005. Quality is one of the things that consumers look for in an offer. cited in Bowen & David. (1990). which service happens to be one (Solomon 2009. The aim of providing quality services is to satisfy customers. It is evident that quality is also related to the value of an offer. p. 831). 413). 2009.6 Service quality In order for a company‟s offer to reach the customers there is a need for services.789). An author defines service as “any intangible act or performance that one party offers to another that does not result in the ownership of anything” (Kotler & Keller. 2002. Service quality in the management and marketing literature is the extent to which customers' perceptions of service meet and/or exceed their expectations for example as defined by Zeithaml et al. 1988). service can also be defined as an intangible offer by one party to another in exchange of money for pleasure. These services depend on the type of product and it differs in the various organizations. Quality can also be defined as the totality of features and characteristics of a product or services that bear on its ability to satisfy stated or implied needs (Kotler et al. They arguedthat measuring service quality as the difference between perceived and expected service was a valid way and could make management to identify gaps to what they offer as services. 340) Thus service quality can intend to be the way in which customers are served in an organization whichcould be good or poor. Service can be defined in many ways depending on which area the term is being used. p.. p. Measuring service quality is a better way to dictate whether the services are good or bad and whether the customers will or are 26 .2. Parasuraman defines service quality as “the differences between customer expectations and perceptions of service” (Parasuraman. In all.

called the 3 “Ps” of service quality” (Haywood 1988. A researcher listed in his study: “three components of service quality. • Professional judgment on the part of serving staff but to get good quality service.. service process customization. The SERVQUAL scale which is also known as the gap model by Parasuraman. (1985) identified 97 attributes which were condensed into ten dimensions. • Personal behaviour on the part of serving staff. it implies less than satisfactory service quality. They held that.. 1993). 19-29). 9-29) What constitutes an appropriate mix. p. One of the most useful measurements of service quality is the dimensions from the SERVQUAL model.satisfied with it. 2009. and contact and interaction between the customer and the service process. 19-29). processes and procedures. they were found to have an impact on service quality and were regarded as the criteria that were important to access customer‟s expectations and perceptions on delivered service (Kumar et al.” (Haywood. and. 214). “Parasuraman et al. according to him will. p. carefully balanced mix of these three elements must be achieved. in part. p. 1988. In the creation of this model for the very first time. From the look of things. and when perceived service is more than 27 . this idea of his could be design to fit with evaluating service quality with the employee perspective. et al. “Haywood 1988. (1988) has been proven to be one of the best ways to measure the quality of services provided to customers. when perceived or experienced service is less than the expected service. service quality was described as comprising of three elements:• “Physical facilities. This service evaluation method has been proven consistent and reliable by some authors (Brown et al. be determined by the relative degrees of labour intensity. p.He stated that “an appropriate. In the study.

Reliability: the ability to deliver the promised service. the obvious inference is that service quality is more than satisfactory (Jain et al. and physical danger. who definitely is the consumer/customer. 2004.expected service. Responsiveness: the readiness of staff members to help in a pleasant and effective way. Understanding the customer: efforts by the service provider to know and understand the customer. Credibility: the trustworthiness and honesty of the service provider. and politeness exhibited by staff Members who are in contact with the customer. From the way this theory is presented. it seems the idea of SERVQUAL best fits the evaluation of service quality form the customer perspective.Tangibles: the appearance of physical artefacts and staff members connected with the service (accommodation. p. This is because when it is stated “perceived” and “expected” service. The original study by Parasuraman et al. staff uniforms. Competence: the capability of staff members in executing the service. who is going to or is consuming the service.. economic risk. (1988) presented ten dimensions of service quality. Access: the accessibility of the service provider. it is very clear that this goes to the person. thoughtfulness. where one part measured perceived level of service provided by a particular organization and the other part 28 . and so on). equipment. Communication: an understandable manner and use of language by the service provider.. Security: the absence of doubt. 27). Courtesy: the respect. In first SERVQUAL model that came had 22 pairs of Likert-type items.

2006. (Grönroos 1983) The idea was that. equipment. Further investigation led to the finding that. stated that “service quality is a focused evaluation that reflects the customer‟s perception of reliability. 2004. customers‟ expectations were met through the outcome dimension (reliability) and exceed it by means of the process dimension (tangibility. Zeithaml et al (2006). The aggregated sum of difference between perceptions and expectations from the five dimensions forms the global perceive quality construct. p. (Laroche et al. and empathy). Reliability: ability to perform the promised service dependably and accurately. p. assurance. some were correlated. Other researchers saw the need of additional components of service expectations that is functional and technical dimensions.. these ten dimensions above were later reduced to five dimensions as below:Tangibility: physical facilities. 106-107). consumersmake service evaluations based on the technical dimension that is what is delivered 29 . Responsiveness: willingness to help customers and provide prompt service. and tangibles” (Zeithaml et al.measured expected level of service quality by respondent. p. 363) Following this view. assurance. 2003. 464 . and appearance of personnel. Empathy: caring individualized attention the firm provides to its customers. After refinement. p. To confirm the validity of SERVQUAL model in the evaluation of service quality.. 106-107). responsiveness. responsiveness. (Kuo-YF. 2006.. “reliability” has been shown consistently to be the most important dimension in service quality (Zeithaml et al.465). among these 10 dimensions. They added that among these dimensions. Assurance: knowledge and courtesy of employees and their ability to inspire trust and Confidence. empathy.

led to confusion with service satisfaction (Jain et al. p. This could mean that. 25-37). 2004.. why.1993). They tested their dimensions in the context of the turbulent airline industry. p. different industries might require different measurements for service quality. Unfortunately. who. it is unclear as to which of SERVQUAL and SERVPERF is superior in measuring service quality (Jain et al.2004. drawbacks in using SERVQUAL in measuring service quality has been thereason that the SERVPERF scale was proposed by Cronin & Taylor (1992. 363: Grönroos 1983). cited in Jainet al. (Laroche etal. (2004. during this past century.. 30 . having found it. This study measured service quality with other service quality dimensions such as technical and functional dimensions proposed by Grönross (1983). 25-37) after they called into question the conceptual basis of the SERVQUAL. p. They meant that higher perceived performance entails higher quality service.and on the functional dimension that is how. 2004 p. Laroche et al.. Although the elements listed in SERVQUAL model have been proven to be the mainmethod for evaluating service quality from the consumer‟s perspective (Brown et al. (2004) made an assessment of the dimensionality of should and will service expectations. Hence it was proven that the SERVQUAL model must not be used in evaluating service quality in all organizations. Till date. These researchers discarded the ´E´ for ´expectation` claiming instead that ´P´ for ´performance´ alone should be used. They used a survey measuring customers‟ post encounter expectations and vis-àvis a well-known airline with a sample of 363 and examined the existence of hypothesized functional and technical dimensions of should and will expectations and determined the casual relationships between two types of expectations and hypothesized dimensions... customers have changed their behaviours in ways that do not suit organizational behaviour. and when it is delivered. 25-37).

4-12) This is in line with the idea of Zeithaml et al (2006. Regarding the relationship between customer satisfaction and service quality. 106-107). (Cronin & Taylor. 31 . 78). because service quality comes from outcome of the services from service providers in organizations. 106-107). p. Oliver (1993) first suggested that service quality would be antecedent to customer satisfaction regardless of whether these constructs were cumulative or transaction-specific. (Wilson et al.2.7 Customer satisfaction and service quality Since customer satisfaction has been considered to be based on the customer‟s experience on a particular service encounter. 2006. p. p. 2008. but satisfaction generally is a broader concept. Spreng & Macky 1996). where customer satisfaction came as a result of service quality. whereas service quality focuses specifically on dimensions of service. which are more enduring and less situational-oriented. In relating customer satisfaction and service quality. Although it is stated that other factors such as price andproduct quality can affect customer satisfaction. p. Satisfaction and service quality have certain things in common. researchers have been more precise about the meaning and measurements of satisfaction and service quality.. 1993. Another author stated in his theory that “definitions of consumer satisfaction relate to a specific transaction (the difference between predicted service and perceived service) in contrast with „attitudes‟. Some researchers have found empirical supports for the view of the point mentioned above (Anderson & Sullivan. perceived service quality is a component of customer satisfaction (Zeithaml et al. 1992) it is in line with the fact that service quality is a determinant of customer satisfaction. Fornell et al 1996.”(Lewis. 1993.

73-82). In addition to what the other researchers have found out from customer satisfaction and service quality.. 436. 226) since service quality acted as one of the factors that influence satisfaction.. confirming the definitions of both variables which have always been linked. 73-82) used a national random telephone survey of 542 shoppers to examine the relationship between service quality. 372).p. (Su et al. p. More evidence of this relationship has been proven by past researches. some other authors Wang & Hing-Po (2002). (1993. Parasuraman et al. and store loyalty within the retail department store context. than customer satisfaction which reflects the customer‟s feelings about many encounters and experiences with service firm. In line with the findings of Sivadas & Baker-Prewitt (2000. Lee et al. As a result of the definition of customer satisfaction presented by Lewis. these two variables are related. went into details to bringin customer value in the study of the relationship between customer satisfaction andservice quality.Some authors have agreed to the fact that service quality determines customer satisfaction. They found out that there is a relationship between customer satisfaction and service quality. customer satisfaction. Sivadas & Baker-Prewitt (2000. 4-12). then it will lead to increase in customer satisfaction. 2007. They also dictated that service quality is more abstract because it may be affected by perceptions of value or by the experiences of others that may not be so good. One of the results was that service quality influences relative attitude and satisfaction with department stores. 2000. 372) in their study of customer satisfaction and service quality. proposed that when perceived service quality is high. p. Some other authors did comprehend with the idea brought up by Parasuraman (1995) and they acknowledged that “Customer satisfaction is based upon the level of service quality that is provided by the service providers” (Saravana & Rao. p. 2002. Su et al. p. (1985) in their study. p. (2002. found out that.. p. Their study 32 ..

customer satisfaction and their influences on future behaviours after the key drivers of customer value and customer satisfaction were identified. customer satisfaction. 2002 p. 50-60) This study blended the study of customer satisfaction and service quality with customer value which added more weight to the linkage between customer satisfaction and service quality because value is what customers look in an offer. between 2008 and2009. there was no study on this field of study that treated the relationship betweencustomer satisfaction and service quality with SERVQUAL dimension.” (Kuo. All of them were based on the development of structural equation models by using PLS-GRAPH Package. 33 . Past studies on the relationship between customer satisfaction and service quality which included SERVQUAL dimension have been published since from 2003 to 2010. and Pearson correlation analysis to analyse the data collected from college students of three major universities in Taiwan. research on this topic increased rapidly in 2010 With regards to the above statistics. Emphasis was then paid to the study of the dynamic relationships among service quality.used SERVQUAL model in measuring service quality in China‟s mobile phone market. t-test. customer satisfaction and loyalty. 461-473). but with modification on the basis of focus groupdiscussions and expert opinions to reflect the specific industry attributes and the special culture of China. One of the results was that” on-line quality and information safety is positively related to the overall service quality. Kuo ( 2003) conducted a research on service quality of virtual community websites with the purpose of constructing an instrument to evaluate service quality of virtual community websites and to have a further discussion of the relationship between service quality dimensions and overall service quality. (Wang & Hing-Po. 2003. but the service quality level of this dimension was the poorest. the research on this topic droped from 2004 to 2006 and was stable. The researcher used Factor analysis. and loyalty. customer value.

Meaning the beneficiaries who stood as the customers were satisfied since recommendation is signal of satisfaction. p.) were scientifically associated with the service quality construct” (Bennett & Barkensjo. Gera. 2000. 2-20) This means it could be useful to test these three variables (Customer satisfaction. and client perceptions of the levels of service quality of charitable organizations. Also. In their results. confirming the idea that service quality is related to customer satisfaction. their satisfaction with a charity service etc. p. 2011. Kuo-YF. Questions were asked to 100 people on their perceptions of service quality of the organizations that had given them assistance. Bennett & Barkensjo (2005) studied relationship quality. It could be interesting totest SERVQUAL model with the 34 . but because when talking about client perceptions. 2005. service quality and Service quality dimensions). They were not directly conducting a research on the relationship between customer satisfaction and service quality. 461-473. The study of Bennett & Barkensjo (2005) stated that “the hypothesis elements ofSERVQUAL model (Tangible.” (Bennett & Barkensjo. 101). p. one must think of their satisfaction. and when talking about service quality there is a link between these two as has been proven by many researchers ( Baker-Prewitt. relationship marketing. relationship marketing was found to represent an effective weapon for improving both relationship quality and beneficiaries' satisfaction with service provision. 101). 73-82. They stated that “relationship quality and actual service quality induced beneficiaries to want to recommend a charity to other people and to engage in positive word-of-mouth. perceived service quality was measured via adaptations of the SERVQUAL instrument but without any assessments of the respondents' prior expectations concerning the services they would receive from an organization. 2005.In contrast to the above studies. assurance etc. they constructed a model and estimated using the method of partial least square. 2003. p.

The researches in this area have been covered so far as below. responsiveness. • Some researchers even tested service quality and service quality dimensions. to measure service quality. empathy. 35 . satisfaction and behavioural intentions in a public sector bank in India and one of their results states that “Service quality was found to significantly impact on customer satisfaction and value perceptions” (Gera.five dimensions and service quality assuming that expectations is included to see if it will be significantly associated. (2010) conducted a mediation of customer satisfaction relationship between service quality and repurchase intentions for the telecom sector among university students. Gera (2011) investigated the link between service quality. p. To crown the fact that customer satisfaction and service quality are important variablesin business research on customers. • It has been researched that service quality could be evaluated by other dimensions of service quality that is. functional and technical and not necessarily SERVQUAL model. value.. assurance and reliability) by Parasuraman et al. 2-20) The literature review shows latest researches up to 2011 on the relationship between customer satisfaction and service quality.• It has been researched that there is a relationship between customer satisfaction and service quality • It has been researched that service quality could be evaluated with the use of SERVQUAL model. In support of the use of SERVQUAL in the relationship between customer satisfaction and service quality. with SERVQUAL model‟s 5 dimensions (tangibles. 2011. Ahmed et al.

Wang et al. 2000. none of the studies had tested the five dimensions of SERVQUAL and customer satisfaction and service quality at the same time to confirm this relationship between customer satisfaction and service quality. 2000). p. 2. p. 113-12. 2002. Liang & Zhang.106-107). 1993. p. It has been proven that “perceived service quality is a component of customer satisfaction” (Ziethaml et al. The general idea from the past literature is that there is a relationship between customer satisfaction and service quality.. Other researchers had proven also that there is a relationship between customer satisfaction and service quality (Sivadas & Baker-Prewitt. p. customers in this paper are those who consume the services.What is lacking is the relationship between customer satisfaction and service quality dimensions. Gera. 2011. satisfaction denotes customer‟s desire to maintain a business relationship with the organization and it is also the feelings of the customers towards the services provided to them by the organizations. 2009. also that service quality could be evaluated with the use of five service quality dimensions and the most useable is the SERVQUAL scale. 2006. Kuo-YF. Andreassen.8 Conceptual Frame work The aim of this section is to summarise the idea I got from past literature and to bring out the contributions I have for this study area.. p. 50-60. Thus. My theoretical frame work treats customer satisfaction as transaction-specific. Among all the recent articles that I could reach. Thus this part starts with the idea generated and the contribution follows. 236 . while customer satisfaction in this study is the pleasures obtained by customers for the services provided to them by the employees of the organizations. 2003. Following the two clarifications about the different views of customer satisfaction of a customer of either being transaction-specific or cumulative (Boulding et al. 73-82.

p. 37 .. This idea generates an assumption that each of the five dimensions of SERVQUAL model could have a direct relationship withservice quality. 2002). 2009. Negi.. p.. it has been stated that service quality is the overall assessment of a service by thecustomers. 2002 p. the five dimension of SERVQUAL modelhas been proven to be the main yardsAtick used by most of the researchers in the evaluation of service quality (Wilson et al. Also. 363-379). Sureshchandar. p. Wang & Hing-Po.20. 2008. This idea generates an assumption that the five dimensions of SERVQUAL model could have a direct relationship with customer satisfaction. Moreover. Also.121). 79. 2008. 2005. Bennett & Barkensjo. et al.101. the SERVQUAL model has been proven to be the best model to measure service quality in service sectors especially with the customer perspective. (Eshghi et al.

before going to the basic part of the study. The respondents (tax payers) back ground deals with the respondent‟s characteristics such as age. 38 .CHAPTER THREE Data Analysis and Interrelation This Chapter deals with major finding of the study.1. 3. it would be appropriate to know the respondents characteristics. All the necessary data and information that were gathered are analyzed and hence the basic issues given the appropriate treatment. Respondents back ground. sex and educational level. However. the respondents selected from different commercial center tax payers of Akaki Kality sub-city small tax payer‟s branch office. It is clearly illustrated in the following table. As indicated previously.

1 Respondents (tax payers) back ground 39 .N0 1 Item Sex Response Male Female Total No 40 10 50 2 15 24 5 4 0 0 50 5 30 3 5 5 2 50 % 80 20 100 4 30 48 10 8 0 0 100 10 60 6 10 10 4 100 2 18 – 25 26 – 30 Age 31 – 35 36 – 40 41 – 45 46 – 50 Above 50 Total 3 Below grade 12 Grade 12 complete Educational Certificate Diploma Level First degree Above first degree Total Table 3.Respondents s.

by chance no one respondents is there above 46 years age. 10% are first degree holder and finally 4% above first degree. This suggests that tax payers of different educational qualifications are present in the Akaki Kality sub-city small tax payer‟s branch office. respondents between 26-30 represent 30% between 36-40 respondents 5 represent 10% also. 60% are grade 12 completed and 6% are certificate and 10% are also by diploma. on gender presents data of respondents. It was also necessary for the study to determine the educational levels of the respondents. The other information that obtained from the above table which means 3. between 31-35 respondents are represent 48% which are the majority. while 10 respondents representing 20% were females.1 revels that 2 respondents are between 18-25 years represent 4%. Analyzing the data from the questionnaire. The table shows that the male respondents formed majority of the target population with the total of 40 representing 80%. table 3.1. 40 . that is 10% of respondents are below grade 12. And also the table above summarizes the data obtained on the ages of respondents.Gender characteristics of respondents In the table 3.1 is the educational background. Age and educational background of respondents The researcher needed to know the age distribution of respondents to help categorize the tax payer because Akaki Kality sub-city small tax payers branch office have different age categories tax payers.

54% of the respondents agreed on the point that benefited from development when we are pay tax to the government.16% and 22% was strongly agreed and agreed respectively on this point and no one is doubted on this point. This shows that most tax payers believe benefited from the development. Item two of the below table 3. As their response clearly indicated that The amount of tax levied by Akaki kality sub-city small tax payer‟s branch office is unfair.2 in item three. 41 .2 Attitude of tax payer about Akaki Kality sub-city small tax payer’s branch office.2 revel that. So it indicated that most of respondents are not satisfied the distribution of cash registrar machine. Similarly. 14% of them were strongly agreed and the rest of them doubted and disagreed the point which account for 20% and 12% respectively. It can also be seen from the table 3. The remaining 14% and 26% agree and strongly agree respectively. 50% of the respondents disagree that the distribution of cash registrar machine is faire. most of 62% of respondents were not agreed The amount of tax levied by Akaki kality sub-city small tax payer‟s branch office is fair. From all respondents.3. 10% of the respondents doubt to show that the distribution of cash registrar machine is faire.

2 Attitude of tax payer of Akaki Kality sub-city. Doubt Strongly agree Total 3 The amount of tax levied by Disagree Akaki kality sub-city small Agree tax payer‟s branch office is Doubt fair. do you Disagree believe benefited from the Agree development. And also 87% of the respondents which majority are 42 .Respondent s. Table 3.no 1 Items The distribution of Responses cash Disagree Agree Doubt Strongly agree Total 2 When you pay tax. the reason for this is because of there is no meeting prepared. Strongly agree Total No 25 7 5 13 50 6 27 10 7 50 22 11 0 8 50 % 50 14 10 26 100% 12 54 20 14 100% 62 22 0 16 100% registrar machine is faire. All of (50 respondents) of tax payers are not participating in panel discussion and trainings related with merchandizing and law of merchandize by professionals.

 Akaki kality sub-city small tax payer‟s branch Has poor controlling system. From all respondents 88% was supported the convenient documentation performance of this branch office is low. In this section respondent of akaki kality sub-city tax payers evaluate the satisfaction level from service of branch office. it clearly indicated that the satisfaction level of tax payer service given by Akaki kality sub-city small tax payer‟s branch office is low which account for 60% the rest 24% and 26% of them believed that it had moderate and low satisfaction level respectively.10% and 2% was supported 43 .run their business without business knowledge which means they are not took a training individually related with commercial or merchandizing activity. measuring workers punctuality and whether its activity is convenient for documentation or not. The respondents put their reason why the cash registrar machine distribution is not fair. 3. When we seen convenience documentation of Akaki kality sub-city small tax payer‟s branch office from the perspective of tax payers. As can be seen from the respondents given. Which means the tax payer are not satisfied of akaki kality sub-city small tax payer‟s branch office service. consuming time for service.the followings are because of what the distribution is not fair: The merchant not give full information and hid their commodity.3 The level of akaki kality sub-city small tax payer’s branch office customer satisfaction from service.  Corruption  Shortage of cash registrar machine.

moderate and high respectively. based on the response of the respondents 96% Akaki kality sub-city small tax payer‟s branch office worker was punctual. 44 .18% and 16% of the respondent reveled as moderate and low respectively. 66% of the respondent supported the akaki kality sub-city small tax payer‟s branch office took a lot of time to serve one customer.1. One of the measurements of quality service is punctuality of the workers. As can be seen from fig.4% respondent support moderate and no one is not support low on this point. It indicated that the document are not handling properly and are not given to the tax payer on the time. This may result in shortage of human resource and problem of convenient documentation.

As we know Qualified human power is one of functional parts for the organization.  The documents are not gives to the tax payer on the time. 45 .120% 100% 80% 60% 60% 40% 25% 24% 20% 0% from service consuming time to satisfaction of the serve one customer tax payer documentation worker punctuality 18% 16% 2% 66% high medium low 10% 96% 88% 4% 0 Fig 1 the level of akaki kality sub-city small tax payer‟s branch office customer satisfaction from service. shortage of human power and absence of necessary department in the organization directly or indirectly affect the organization function.  Weak information network with other sub-city branch office.2% respondent believe that enough human power Akaki kality sub-city small tax payer‟s branch office but most of the respondent not agreed the point which means 98% of do not believe enough human power in the Akaki kality sub-city small tax payer‟s branch office and they put the negative impact that shown in this branch office as follows: Worker spent a lot of time to accomplish one task.

According to the respondent a yearly tax are levid by observing the commodity in the market cell and guessing of the profitability of the merchant. I interviews.00birr the merchant used cash registrar machine. But the merchants hid their commodity. The next part is the overall responses of Akaki kality sub-city small tax payer‟s branch office worker:Cash registrar machine distributed based on the capital. The worker also said that there is no document lost in the documentation room but because of shortage of human power and poor storage of the document may customer delay a few minutes. The capital is above 5000. 3.4 INTERVIEW ANALYSIS I already indicated in the metrology parts. Because of this there is no professional trainer of tax payer and shortage of qualified worker in documentation department.Documentation room and tax leivd department are indicated by respondent that human power are not sufficient. The workers of Akaki kality sub-city small tax payer‟s branch office believe that shortage of human power in their own organization. commodity or goods stored in market cell. 46 . workers of Akaki kality sub-city small tax payer‟s branch office by purposive technique.

 For merchants side of view. Most tax payers believe that benefited from the development because of tax paid for the government but they are not believed Ethiopian revenues and customs authority have a good tax collection system.  The government loss a huge amount of money from tax collection. Many merchants are run their business without knowledge of business. he/she does not compute with those are not used cash registrar machine because the merchant customer are not buy tax levied commodity or goods.CHAPTER FOUR CONCLUSION AND RECOMMENDATIONS 4. Un fair distribution of cash registrar machine have two negative impacts. 47 . 2. 4. Most of tax payers do not believe the distribution of cash registrar machine is fair. akaki kality sub-city small tax payer‟s branch office levied a yearly tax by forecasting or guess 6.1 Conclusions This study puts some points are conclusions and this points are listed as follows:1. They also blame the implementation such as the amount of tax levied and corruption. The amount of tax levied on the tax payer by Akaki kality sub-city small tax payer‟s branch office is not fair related with their profit 5. 3.

4. But it does not implement. I think because of this majority tax payer do not paid tax on the time.2 RECOMMENDATION There are many causes and problems that tax payer are not satisfying the service of Akaki kality sub-city small tax payer‟s branch office. 3. so this office work a lot for fair distribution of cash registrar machine and build controlling system. This branch office for exiting department must employee additional professional and must extend the necessary department. 5. Akaki kality sub-city small tax payer‟s branch office will be prepared a training and meeting by professionals in order to maximize the amount of tax collection and increase the knowledge of the merchant. akaki kality sub-city small tax payer‟s branch office must improve and correct as much as possible the implementation of well organized implementation of tax levied on the trade. Akaki kality sub-city small tax payer‟s branch office must change a traditional tax assessment. There are some points recommended as a solution. tax collection system especially the 48 . akaki kality sub-city small tax payer‟s branch office have not efficient enough workers because of this the customer are not satisfied. 4. 2. 1. Akaki kality sub-city small tax payer‟s branch office has criteria. which merchant is used cash registered machine or not used.

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