Abstract:
The study intended to assess the effectiveness of revenue collection efficiency in Tanzania; With
this regard, the study came up with three objectives, namely; to identify factors influencing revenue
collection efficiency in Dodoma city, to examine the perception of the effectiveness of revenue
collection system in Dodoma city, to identify challenges facing Dodoma city council in revenue
collections. The study adopted a cross-sectional research design. Data collection involved
questionnaire, which included 80 respondents, an In-depth interview, Focus Group Discussion. The
researcher analyzed surveyed data through the IBM-SPSS 20.0 computer software. The study
results found that, technology, education, administrative capacity, commitment and other are very
important in revenue efficiency collections to the government. Furthermore, the study found that the
perceptions of many respondents reported that Dodoma city had inefficiency of revenue collections
system. Moreover, the study found that revenue collections agents are effective in revenue
collection process comparing to others like Dodoma City Council. But also, the study found that
there are many reasons which cause inefficiencies of revenue collections like lack of qualified,
competent man power and unwillingness to pay revenue to mention few. Lastly, the study observed
that Dodoma City Council faces many challenges in implementing efficiency of revenue collections
like poor data management, tax compliance, technology infrastructure, legal and regulatory
framework, and political interference to mention few. The study recommended that, the government
under the Ministries of Local Government Authority and Finance must provide trainings, skills and
education on important of tax paying to businessman’s, and quick strategies of addressing
challenges facing effectiveness of revenue collections efficiency in Tanzania.
