Proper tax collection and administration were one of the impetuses to bringrnsocio-economic transformation in any country. For this end, countries put inrnplace different system. Nonetheless, their effort faces many challenges. At federalrnlevel it is the federal parliament which is responsible for levying taxes assigned tornthe federal government (Art. 51). Regional State Taxation Powers Taxation powerrnof the regional states within their jurisdiction. Federal government and states allrncollect taxes and shall share revenue taking the federal government into accountrn(Art.95). Article 98 lists concurrent powers of taxation as follows: profit, sales,rnexercise, and personal taxes on enterprises they jointly establish; taxes on thernprofits of companies and individuals to shareholders; taxes on the incomes ofrnderived from large-scale mining and all petroleum and gas operations. Inrngeneral, the division of revenue-raising power in Ethiopia is mainly structuredrnaccording to the categories of taxpayers or particular things as a source ofrnrevenue. The exclusive domain of each government is not the tax base but the taxrnsource. The concurrent tax collection by the federal government and OromiyarnRegional Government and major challenges in the process. The research usesrndescriptive research approach and the data is collected using questionnaires,rninterviews and focus group discussion. The data collected from the surveyrnquestionnaires were analyzed by using descriptive statistics, including mean,rnfrequencies and percentages. The result shows that the regional state in the casernOromiya is losing its due share due to a tax base pattern instead of Tax source.rnDangote is a good example of this sorry saga, it is large taxpayer in the countryrnbut due to is tax center based in Addis Ababa being sourced from Oromiya ,rnOromiya is losing a great deal of income every fiscal year. No system wasrnestablished to tackle this and the Federal Government and the Oromiya regionalrnstate did not take any corrective measure over the last fifteen years intentionallyrnor negligently. There was no any promulgation of guideline or policy that compelrnindividual or company has to pay its profit tax in area where it investing not inrnarea where its tax center based.