Abstract:
Electronic tax service is one of the most useful instruments to increase productivity and revenue
of government and taxpayers. Despite these, however, only small numbers of taxpayers are using
the service and others in Addis Ababa found to be reluctant to use electronic tax service.
Therefore, the study was focused on assessing the factors that affect taxpayers’ adoption for etax
service in west, east and large taxpayers in Addis Ababa. The total population in the selected
three branches was stratified in to two strata (e-tax adopters and non-adopters). Then two stage
sampling was employed to select sample respondents. Results are based on data collected from
questionnaires of 208 out of 18030 randomly selected taxpayers. Descriptive statistics and probit
regression methods were employed. The result shows that perceived usefulness, perceived risk,
self-efficiency and timeliness were significant factors of taxpayers’ adoption for electronic tax
service but subjective norm is insignificant. Tax authorities and concerned parties should do on
expanding electronic tax service by create access to other branches to adopt the system and as
the e-tax service is effective and productive in the three branches (west, east and large
taxpayers) in Addis Ababa, government should create awareness to other branches.