Abstract:
This study aimed to evaluate the challenges related to cross-border activities that impact
revenue collection performance in Tanzania, focusing on the Namanga customs station. The
specific objectives were to investigate and identify the primary cross-border challenges affecting
revenue collection performance at Namanga, categorize these challenges based on their nature
and significance in affecting revenue collection, and examine the impact of cross-border
challenges on revenue collection performance at Namanga Customs station. A descriptive
research design was employed, utilizing interviews and questionnaires as data collection tools
from 100 respondents. The study identified various challenges influencing cross-border revenue
collection performance. These challenges encompassed ineffective trading regulations,
insufficient accountability among border officials, flaws in the tax system and equity, unregistered trade, lack of transparency among border officials, corruption, and a low level of
technology for electronically detecting and prosecuting documents and granting tax exemptions
for low-valued imports. Additionally, delays in goods at the border, trade and resource losses
for the country, high costs incurred to address cross-border challenges, security concerns due
to the presence of weapons, a decline in revenue collection due to the long vehicle queues
caused by the COVID-19 pandemic, loss of country revenue through unpaid taxes and
smuggled goods, and improper accounting of foreign currency at the border by the Tanzanian
government were identified as effects caused by cross-border challenges, impacting revenue
collectionperformance. The study suggests that the Tanzania Revenue Authority (TRA) should
intensify efforts and expedite inspections and tax assessments for imported goods to maximize
revenue collection. Furthermore, the government, through the Tanzania Revenue Authority,
should streamline border crossing procedures by providing quick access to any restrictions,
attracting customers to services, and consequently enhancing collection and voluntary
repayment
