Influence of Local Government Revenue Collection Information System on Revenue Performance in Arusha City Council

Abstract

This study was conducted to assess the influence of computerized revenue collection system on revenue performance in Arusha City Council. The study used both secondary and primary data. Primary data were collected by using a questionnaire. A total of 63 questionnaires were returned and thus analyzed. Findings revealed that revenue collection increase sharply after introduction of LGRCIS. The actual revenue collected increased from TZS 3,077,144,600.00 in 2009/10 to TZS 20,400,000,000.00 in 2019/20. In the span of 10 years, revenue difference was TZS 17,322,855,400.00; equivalent to 562.95%. Results of descriptive analysis revealed that mean revenue for five years after introduction of LGRCIS was TZS 14,055, 951, 404.43 compared to TZS 5,112, 931.69 in similar period of five years before introduction of the system. Further results of paired t-test revealed that there was a statistically siginificant difference between revenue collected before (mean = TZS 5,112,931,033.69, SD = 2917116903.18) and after (mean = TZS 14,055,951,404.43, SD = 1573439229.62) introduction of LGRCIS in Arusha City Council (t (4) = 10.734, p < 0.001). Findings further showed that among major challenges hindering effective implementation of LGRCIS in Arusha City Council were unreliable electric power for recharging revenue collection devices, poor internet connectivity, staff were reluctant to move to automated technology and poor knowledge of use among users. Some of key recommendations made were as follows. Arusha City Council should train its staff on how to effectively use LGRCIS revenue collection devices. Arusha City Council should introduce devices which can use solar energy so as to address current situation where charging of those devices is a problem. Finally, Arusha City Council should accompany the devices with another devices which provides an additional internet connection like mobile phones or modems.