This study was set out to examine
presumptive tax system implementation
effectiveness in Hawassa city of Sidama Regional
State, Ethiopia. To achieve the objective of this
research, the study used a mixed research method.
The primary data sources were collected through a
structured questionnaire and focus group
discussion. The descriptive statistics analysis has
been done. Then, the result of this study showed
that the Hawassa city revenue authority is not effective
in presumptive tax system implementation. Also, this
study revealed that lack of equity and fairness in
presumptive tax assessment, lack of clarity and
simplicity of tax procedure, the complexity of tax
rules, taxpayers’ poor awareness of the
presumptive system, the existence of unethical and
corrupt tax officials, and poor social norms
between taxpayers and the tax authority were the
key challenges faced by the city tax authority.
Finally, the findings of the study inform
policymakers about presumptive tax system
implementation effectiveness in Hawassa, Ethiopia.
Keywords : Assessment, Presumptive Tax System; Implementation; Effectiveness, Ethiopia.