The fact that taxation is essential for sustainable economic development and tax administration is as basic function of a successful state makes tax authority to improve its tax collection services and make tax administration more effective. The study investigated the adoption of E-taxing by tax revenue authorities in Ethiopia regarding the barriers which can affect the authorities from taking advantage of E-taxing system and anticipated benefits derived by adopting the system. The study was carried on the data collected from tax revenue authorities in Ethiopia especially in Wolaita Sodo town tax revenue authority. Purposive sampling method was applied to draw the sample from the target one. A mixed research approach was used to answer the research questions that appear through the review of existing literature and the experiences of the researcher in respect of the E-taxing system in Ethiopia. The study statistically analyzed data received from the survey questionnaire and interview. The result of the study indicated that, the major barriers of Ethiopian taxing authorities faces in the adoption of Electronic taxing are, frequent power interruption, tax payers low levels of computer literacy, lack of sufficient government support affect tax payers willingness lack of uniform platform by tax authorities for adoption and growth of E-taxing technology in Ethiopia, lack of skilled manpower exist in tax revenue authorities, limitation in network infrastructure. Lack of enough coordination, interaction and cooperation between tax revenue authorities and other decision making/like ETC and EELPA/centers in e-taxing context and lack of legal framework for e-taxing for implementation and growth of Etaxing technology in Ethiopia and the benefits are E-taxing to improve customer service and satisfaction-taxing wish to satisfy rapid change of customer/tax payers need and preference, E-taxing to improve the relationship with customer and E-taxing to cover wide geographical area for the development of E-taxing technology, increases productivity of the tax revenue authorities decrease the work load of makers, reduces paper work and HR requirement and enhance productivity in the taxing authorities as a driver of adopting and developing E-taxing system in Ethiopia. The study recommends sequence measurement which could be taken by all tax revenue authorities staff and management body creates collaboration with the respective government organ for the development of E-taxing Technology by investing on ICT infrastructure, set clear direction and focused on technological innovation for the Globalization of the country.