Abstract
The objective of this study is to assess how the Gondar town taxpayers perceive the existing tax system in relation to tax complexity and tax efficiency. A survey using self-administered questionnaire has been used to collect the primary data. The survey included 285 respondents among business profit taxpayers in Gondar, Ethiopia but just 268 copies are received. In order to achieve the objective of the study, both descriptive and inferential statistics have been applied. The collected data are described using mean and standard deviation. And also, two hypotheses are developed and tested using one sample t-test. The study reveals that, taxpayers perceive that, the existing tax system is too complicated, complex and tedious in procedural complications. And the tax system is economically inefficient because, the current Ethiopian tax system isn’t attractive for foreign investors to invest their money in Ethiopia. Finally the researcher concludes that, the Ethiopian tax system is complex and economically inefficient from tax payers’ point of view. Based on conclusions drawn the researcher recommends that, the tax authority in particular and government in general shall try to empower the tax payers with knowledge and changing their perception through sustainable awareness creation programs.
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