The Analysis of Value Added Tax (Vat) to Increasing Government Revenue in Ethiopia

Abstract

The value added tax is a significant source for increasing the revenue of the Government in Ethiopia. It is a family of indirect tax paid on the value added to goods and services by enterprises at each stage of the production and distribution process. The main objective of the study is to analyze the contribu-tion of VAT to increase the governments’ revenue and makes comparative analysis with other types of taxes. In order to drive the main objective of study the secondary source of data is being under persuasion. Most of the data are secondary by nature and collected through internet sources, newspa-pers, published and unpublished reports of the Government of Ethiopia etc. Furthermore, the study has to use simple descriptive statistical methods like table, percentage, and chart to analyze the data