THE ROLE OF INFORMATION AND COMMUNICATION TECHNOLOGY APPLICATION ON REVENUE COLLECTION IN TANZANIA:

Abstract

The study assessed the role of information and communication technology application on revenue collection in Tanzania, a case of TRA Arumeru Branch. Specifically, the study intends to identify the drivers of information and communication technology towards revenue collection, to assess the relationship between Information Systems (IS) efficiency and effectiveness in revenue collection and to determine the strategic effect of ICT support services on revenue collection at Revenue Authority. This study employed the case study research design and the mixed research approaches. Information was collected from 36 respondents. Both primary and secondary data were collected. Primary data were collected by the use of questionnaire and through interviews while secondary data were obtained through documentary review. Two types of data will be analyzed. Quantitative data were analyzed using descriptive statistics such as frequencies, percentages, mean and standard deviation. Quantitative data were entered and coded on SPSS version 20. Qualitative data were analyzed using content analysis. It can be deduced that there were various drivers of information and communication technology towards revenue collection. Majority of the respondents argued that top management interest and Attitude and Existing and available infrastructure and resources had an influence on the adoption of information and communication technology towards revenue collection. The findings further indicated that respondents agreed that Policy directive of TRA and Benefits of adoption resources had an influence on the adoption of information and communication technology towards revenue collection. ICT have improved the operation of tax collection because nowadays we have the data base of our customers, he added that, we know each customer we are serving and their tax base. In the second research objective, the study concludes that all respondents agreed about how Information Systems (IS) improves efficiency and effectiveness in revenue collection. This was witnessed through efficient time Utilization, Online tax payment has helped TRA to control the collection process, facilitation of better communication with its beneficiaries in service delivery, expanding its revenue base. The Tanzanian taxation system is built on three important components; namely tax ICT efficient, tax law and tax administration. Tax administration incorporates a set of activities in ensuring that tax is levied based on relevant tax laws and sanctions applied where appropriate. It comprises three interrelated functions, namely; identification of tax liabilities, the collection, prosecution, and penalty activities. TRA gets its revenue from the taxes, therefore to ensure a success in this procedure, the tax authorities ought to receive internal support. In the last research objective, the study concludes that there were no varying views on the strategic effect of ICT support services on revenue collection at Revenue Authority in the study area. This was witnessed introduction of new systems of revenue collection, introduction of i-Tax, Registration of more taxpayer and the adoption of I Customs systems. It is recommended that TRA should continue employing requisite IT personnel, network administrators, their supporting staff and train the existing staff in the use of advanced technological tools in anticipation of the ICT adoption. TRA must also invest in a reliable internet service with high capacity, resilient and robust network to support the huge packets that are going to be transmitted from one point to the other. The availability of servers with high storage capacity must be obtained to cater for the large data that will be stored. Training should be given to all staffs on ICT. ICT development is of core importance to many organizations in need of growing successfully and improves efficiency in operations and in serving clients. More training on the viii reforms and modernization at TRA should be enhanced so as to improve on the skills, knowledge and professional capacity of the employees to increase revenue.