CHALLENGES FACING CUSTOMS AND EXCISE REVENUE COLLECTIONS AT TANZANIA’S BORDER POSTS

Abstract

This study examined the challenges facing customs and excise revenue collections at Tanzania’s border posts, with a specific focus on Kasumulu One Stop Border Post (OSBP). Specifically, the study aimed to: determine the effect of system integration on customs and excise revenue collections, the effect of smuggling on customs and excise revenue collections, and examine the effects of infrastructure and technology on customs and excise revenue collections at Tanzania’s border posts. A positivist research philosophy was employed, utilizing a quantitative approach with a descriptive research design. Data was gathered from a sample size of 75 respondents out of a population of 300, selected through simple random sampling. The primary data collection method was a structured questionnaire with a 5-point Likert scale. Analysis included descriptive statistics and factor analysis to identify significant challenges and their impact. The findings indicated that border infrastructure challenges had a significant positive impact on revenue collection efficiency (Beta = 0.348, p= 0.004 system integration also had a notable effect (Beta = 0.835, p = 0.000), while smuggling effects (Beta = 0.094, p = 0.457). The factor analysis revealed that the combined challenges explained 80.4% of the variance in revenue collection issues at Kasumulu OSBP (R² = 0.804). The study concluded that addressing infrastructure limitations, enhancing system integration, and improving staff training are crucial for overcoming revenue collection challenges. Recommendations include investing in border infrastructure, streamlining customs procedures, and providing targeted training to customs staff to enhance the effectiveness of revenue collections at Kasumulu OSBP.