The biggest impediment to the Ethiopian government’s ability to raise revenue by its means to the required level is the lack of taxpayers’ compliance behavior with the tax system. Therefore, this study examines the key determinants of taxpayers’ compliance behavior with the tax system in the Afar regional state. To this end, two purposively selected woredas (Awash and Aba’ala) and one city administration (Samara-logia) were used. Primary data were collected from 404 randomly selected respondents. The ordered logistic regression model was used to analyze the factors that determine tax compliance. Results show that tax knowledge, probability of detection, perception of government spending, organizational strength of the tax authority, fairness of the tax system, and simplicity of the tax system have positive effects on tax compliance, whereas tax rates have a negative effect on tax compliance in the Afar regional state. As a result, it is suggested that the tax authorities launch effective and brief awareness-development and tax education programs for the general public and taxpayers in particular. The tax system, notably the tax return, tax forms, and tax rules, should be simplified by the tax authorities so that they are readily understood by taxpayers. Furthermore, the tax authorities should be powerful enough to effectively and efficiently enforce the tax laws, and to ensure tax fairness, their tax liability must be determined by their ability to pay. Lastly, the government must maintain accountability and transparency in how tax revenue is dispensed, as well as deliver social services to the public efficiently and intelligently so that taxpayers have faith in and a favorable attitude toward the taxes they pay and the tax system.
Saving is a crucial tool for enhancing the livelihoods of pastoral and agro-pastoral communities, but due to a number of factors, its status and intensity are still in their infancy. Because of this, the current state of saving practices, their causes, and the size of pastoral and agro-pastoral communities are all examined in this study. A multi-stage sampling process was used to determine the 600 typical selected households. In order to assess the data, a double hurdle model was used. From the descriptive analysis result, only 35% of pastoral and agro-pastoral groups were savers. In comparison to their counterparts, households who have access to credit, are financially literate, engage in non-farm activities, cultivate crops in addition to livestock husbandry, use informal financial institutions, are educated, and wealthier are more likely to be savers and eager to save a larger amount of property. Households with more livestock and who live far away from formal financial institutions, on the other hand, are less likely to be savers and save only a small fraction of their income. Male-headed families are more likely to participate in saving decisions, whereas female-headed households must save more than their male counterparts once they have opted to save. Instead of relying on ineffective monetary policy (changing interest rates), any concerned bodies should emphasize mixed farming practices, establish financial institutions nearby to improve saving habits, provide non-farm training, and empower women in order to close the gap between savers and non-savers and mobilize resources to save and invest. Furthermore, raise awareness of financial institutions’ products and services, as well as provide credit.
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