This study aimed to“assesstax payers’ attitude on factors that affect voluntary complianceof category ‘C’ taxpayers’ in Arba Minch City, SNNPR, Ethiopia. The factors like equity and fairness of the tax system, level of awareness of taxpayers, effectiveness and efficiency of tax authority, socio-cultural factors and political factors. To achieve this objective of the study primary source of data was employed via self-administered questionnaires which include both open and close ended questions from the sampled category ‘C’ tax payers.The study found lack of awareness as major and leading reason for non-existence of voluntary compliance among category ‘C’ tax payers. Further,efficiency and effectiveness of the authority in improving the tax assessment and collection procedures, creating awareness, enforcing the tax law positively affect voluntary tax compliance of tax payers. Socio-cultural factors also affect attitude of taxpayers towards taxation positively as well as negatively. However, political related factors were found insignificant in this survey.