DEREJE DANIEL TONA2026-01-292024-03https://etd.hu.edu.et/handle/123456789/349The study focused on the assessing practice, opportunities and challenges of e-tax system in Ethiopia's Ministry of Revenues Hawassa branch office. The study adopted descriptive research design and data was collected through the use of questionnaires and structured interview. A sample of 269 tax payers and 143 employees of the branch were included in the study. The study used SPSS Version 27 to analyze the feedback and generate descriptive statistics. The result of the study shows that the branch office has started applying the system since 2021 and most of the tax payers are using the new system. But still there are some tax payers who do not started using the system. Benefits of e-tax adoption and development as perceived by the Ministry of Revenue and tax payers are: reduces paper work, reduce transportation cost, reducing errors of calculating due tax, and decrease the queue of the tax office. The focus of government on digitalization and encouragement of cashless transaction, and increasing digital payment system in the country are some of the opportunities for the implementation of electronic tax system. The lack of adequate coordination between banks and tax office, weak internet services, frequent power disruption, overcrowding of the server at the end of the month, and lack of local language are considered the basic challenges facing the implementation of e-tax system. The study advised tax office to work with stake holders and to improve the system to offer full package of an electronic tax system.E-taxPracticeOpportunitiesChallengeThesis