AN EXAMINATION OF CONTRIBUTION OF INFORMATION COMMUNICATION TECHNOLOGY (ICT) ON VAT COLLECTION:

Abstract

The aim of the study was to Investigate the contribution of ICT on VAT revenue Collection in Tanzania by taking Hain Tax region as a case study. The study used a descriptive research design and the stultified sampling technique to select 133 respondents as a sample size to represent the study population The. population of the study were 200 respondents, in which 30 respondents were from three different tax consultants (tax experts), traders and staffs of TRA Ilala Tax region office. The analysis of data based upon Binary logistic regression. The study revealed that the use of EFD machines positively increased and enhanced the monitoring of VAT evasion was statistically significant at p= 0.001, Wald = 11.075, and Exp (p) = 13.483. The findings indicates that most of the respondents who are TRA's employees have accepted that it is very efficient using mobile payment as their mode of payment in the organization as it increases transparency in value added tax collection. The results were statistically significant at p= 0.000, Wald = 10.913, and Exp (t3) = 13.897. The study concluded that the use of EFD machines positively increased and improved the monitoring of VAT evasion and at the same time improved timely VAT revenue collection. The EFD machines enhanced the issue of cost effectiveness to VAT traders and to TRA too as it is easy to use the EFD machines to monitor many traders. The study recommended that TRA with the help of the government should highly emphasize on the usage of EFD machines and tax filing system as the study found that in improving the filling of return, improve taxpayer's VAT return but also tackling corruption. The study also found that updating of the system highly increases the collection of revenue. The study recommended that TRA with the help of the government should highly emphasize the, usage of EFD machines. The TRA management should emphasize the usage of mobile payment system as it increases the accurate in value added tax collection, it increases the efficiency in value added tax collection, increase security but also increase transparency in efficiency in value added tax co value added tax collection. Therefore, the government should support the use of mobile payment system in their daily activities. The study recommends that TRA management and the government in general should emphasis in highly using of tax filling stem as the study found that improve taxpayer's VAT return but also tackling corruption. that in improves the filling of return, The highly increase the collection of revenue.