Abstract:
The study conducted to assess if the tax revenue can bring about the growth of the economy in Tanzania, as it has been observed from the World Development Indicators that there is existence of fluctuations of economic growth in Tanzania as the tax revenue increases. Data applied under this study was annual time series data for the period 1997 – 2017, and the Model used is Ordinary least square method (OLS) of multiple regression which has established the relationship between the dependent and independent variables. The findings of the study have shown that the effects of the tax revenue on economic growth is of positive effects that means tax revenue is statistically significant to explain about the growth of the economy on Tanzania. The study recommends that the government of Tanzania should provide education to the citizen, enhance good policies to improve the tax revenue collection and to keep track of tax administration systems to make sure that there is an increase of tax revenue to ensure the growth of the economy.
