The financing of government is a matter of universal concern, for practically everyone enjoys some advantages from the service of government and also contributes to their support. tax is not the only means for raising government revenue, for macro economy stability and a tool for the government’s fiscal policy (contractionary and expansionary) rather it is also a means of reducing income inequality. The aim of this research paper is aims to give insight the origin and development of the Ethiopian tax system, to give insight for the current tax system for the concerned body, and to examine the countries tax system to that of selected East Africa countries.