Assessing the Effectiveness of Revenue Collection Practices on the Performance of Local Government Authorities:

Abstract

This study aimed to assess the impact of revenue collection practices on the performance of local government authorities in Nanyumbu District Council, Tanzania. This study's general objective was to assess how revenue collection practices impact local government authority performance. Specific objectives include evaluating the efficiency of the revenue administration system, transparency and accountability in revenue collection, and the role of capacity building for revenue officials. Theoretical frameworks, including revenue administration theory, tax compliance theory, and political economy theory, provided context for understanding revenue collection practices and their impact. A descriptive research design was used, utilizing both quantitative and qualitative approaches. The study area, Nanyumbu District Council, is strategically selected due to its representative nature and reliable administrative data. Stratified random sampling ensured representative participant selection which is 65 individuals for the study, while structured questionnaires gathered data. This study critically evaluates the efficiency of the revenue administration system, transparency, and accountability in internal revenue collection, and the impact of capacity building and training in Nanyumbu district. Employing a comprehensive approach, the research explored the perspectives of diverse stakeholders, including citizens, taxpayers, and revenue officials. The findings indicated a positive consensus on the efficiency of the revenue administration system (80%) and a belief in transparency (70.8%). However, reported cases of revenue leakage or corruption are acknowledged by 72.3% of respondents, suggesting potential challenges. Recommendations were tailored to address the needs of district authorities, revenue officials, and citizens, emphasizing the importance of anti-corruption measures, ongoing training, and community participation. The study's broader implications extend to local governance practices in Nanyumbu district council and contribute to the ongoing discourse on effective revenue administration systems.