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One of the objectives of the governments to levy taxes is to finance their expenditures. The age of taxation is as old as governments; it had taken many improvements and reforms at different time to fulfill the intended objectives. Belie Gesgar woreda is one of local government units which has a mandate and power to administer tax revenues given to it. Majority of traders in the woreda are category "C" taxpayers. But the woreda couldn't collect presumptive tax revenue as it plan. The objective of this study is to investigate factors affecting presumptive tax collection in the woreda. To achieve this objective, the target population of this study was 540 taxpayer and 13 revenue authority employees were taken as population and the sample of taxpayers were selected through stratified random sampling technique, where as the sample of revenue authority were selected through purposive sampling methods.