Effectiveness Of the Factors Influencing Revenue Collection Efficiency in Local Government of Tanzania

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.