Electronic Tax Stamps and its Effect on Government Revenue Collection in Tanzania

Abstract

vi ABSTRACT This study examines the effects of Electronic Tax Stamps (ETS) on government revenue collection in Arusha City. The research focuses on specific objectives, including assessing the implementation of electronic tax stamps, analyzing their impact on government revenue collection, and examining the barriers to their implementation. The study involves demographic characteristics of respondents, such as sex, age, education level, and experience in business. The findings indicate that a majority of respondents perceive the electronic tax stamp system as effectively implemented and improving the accuracy and transparency of tax collection. However, opinions vary concerning its impact on reducing tax evasion, simplifying tax payment processes, and increasing compliance among businesses. Several barriers to implementation were identified, including a lack of awareness among taxpayers, insufficient training for tax officials, limited technological infrastructure, resistance from business owners, and inadequate resources. To address these challenges, the study recommends awareness and education campaigns, training and capacity building, infrastructure improvement, engagement with business owners, resource allocation, and regular evaluation. In conclusion, while electronic tax stamps offer potential benefits for revenue collection, addressing the identified barriers and implementing the recommendations is essential for a successful and effective implementation in Arusha City . Collaboration with stakeholders and investment in education, training, and infrastructure are key to ensuring the long-term success of this tax reform initiative