Abstract:
The main aim of this study is to investigate the major determinants of tax revenue collection in
category “A “and “B” taxpayers. To achieve this objective a cross-sectional data was used. An
explanatory and descriptive research designs were applied to investigate the relationship that
exists between the level of tax revenue collection and its determinants. The study used a mixed
research approach, which involved collecting both quantitative and qualitative data. The
quantitative data was collected through a survey of 311 taxpayers, and the qualitative data was
collected through interviews with a small number of taxpayers. Due to the qualitative nature of
the response variable multiple linear models was used. The collected data through likert scale
was analyzed though SPSS Version 25. The finding showed that tax evasion, Political instability,
corruption and merchant migration significantly negatively effect on tax revenue collection
whereas tax fairness, employee competency, technology utilization and the strength of the
organization had significant positive effect on tax revenue collection. The researcher recommend
that the government can increase tax revenue collection by increasing taxpayers education,
improving law enforcement capability, improving staff competency, stabilizing political
situations, expanding modes of tax collection (technology).
