Tax compliance attitude of the rural farmers: The case of Ethiopia

Tax compliance attitude of the rural farmers: The case of Ethiopia

Applying binary logit regression model, we argue that tax compliance is a function of the individual smallholder farmers and related variables. The evidence presented in this article, based on the 2014 5th Afrobarometer Survey. Using this method, we find some similarities, but also differences in factors that are correlated with tax compliance attitude in the smallholder farmers of Ethiopia. We confirm that people who are more happy with open administration arrangement will probably have tax compliant attitude. Also, those farmers who perceive that their ethnic group may think that treated unfairly are less likely to have a tax compliant attitude. The tax knowledge of the smallholder farmers is also significantly correlated with tax compliant attitude in Ethiopia. These findings are robust to different econometric specifications.