This book discusses the role of Value added tax (VAT) on Economic growth of Ethiopia both theoretically and empirically. To that extent, the author reviewed various related issues on taxation in general and VAT in particular and then shows their relationships with Economic growth. Subsequently, the author ascertains that as compared to sales tax, VAT boosts the general economic growth of Ethiopia but the issue of regressively resembling to sales tax still continues. There was positive and significant correlation between VAT, total tax revenue and non-tax revenue with that of GDP while foreign revenue is insignificant but positively related to GDP. In this regard, the author recommends that it is appropriate to depend sufficiently on tax revenue and to some extent non-tax revenue than waiting the support of foreign revenue. And both the collections and implementations of tax revenue must be supported by strong administration with fashioned cooperation’s. Therefore, this book is recommended to any individuals who wish to gain knowledge about taxation, non-tax revenue, foreign revenue, sales tax and VAT as relation to Economic growth in general and Ethiopian context in particular.