Abstract:
This study investigates the challenges of revenue collection faced by Arusha City Council and
their implications for service delivery efficiency and effectiveness. The study applied a mixed
method research approach hrough a combination of surveys and key informant interviews.
The study involved a sample size of 91 respondents who were revenue collectors working at
Arusha City Council. Data were analyzed through descriptive statistics and content analysis.
Findings from the study reveal that Arusha City Council grapples with diverse challenges that
hinder its capacity to collect revenues from its own sources. Taxpayer-related challenges
include unwillingness to pay taxes, limited tax education, perceived unfairness of tax rates,
participation in the informal economy, and instances of corruption. Institutional challenges
encompass a shortage of qualified revenue collectors, the use of harsh revenue collection
methods, weak enforcement of revenue collection laws, low utilization of local government
revenue collection information systems, and political interference in revenue collection.
Furthermore, the study highlights that these revenue collection challenges have a direct and
detrimental impact on the efficiency and effectiveness of service delivery at Arusha City
Council. Delays in service delivery, project completion delays, increased service delivery
costs, facility and human resource shortages, delayed response to citizen issues, decreased
service quality, and declining citizen satisfaction are among the consequences of these
challenges. In response to the identified challenges, the study proposes several strategies for
revenue collection improvement, including enhancing internal control systems, providing
taxpayer education, increasing the number of qualified revenue collectors, conducting
feasibility studies to identify new revenue sources, and reviewing the performance of revenue
collectors. Encouragingly, respondents generally expressed agreement with these strategies,
suggesting potential for their successful implementation. In conclusion, this study underscores
the complexity of revenue collection challenges and their tangible impact on service delivery in
Arusha City Council. The findings provide valuable insights for policymakers and local
government officials seeking to address these challenges and enhance service delivery. To
ensure effective revenue collection and efficient service provision, future efforts should focus
on policy reforms, taxpayer education, institutional capacity building, and transparency
measures.
