Abstract:
GePG has been proved by numerous studies to have a potential influence in government revenue collection. The Government of Tanzania through Ministry of Finance and Planning and other stakeholders, implemented the Government e-Payment Gateway (GePG) system since 2017. The objective of the study was to assess the effectiveness of GePG system on revenue collection in Tanzania. Total revenue collected by TCAA using GePG system was treated as a dependent variable whereas the sources of this revenue (safety fees, administration charges, and landing & parking fees) where classified as independent variables respectively. Secondary data for a period of 42 months were used from January 2017 to June 2020, which consist of 21 months before GePG and 21 months after GePG and Quantitative approach was used. Multiple linear regression model was employed with the regression results of 86.01% R square (R2) before GePG and 94.40% R square (R2) on the model after the GePG implementation. At 5% level of significance, the model before GePG introduced were positive related with P-value of less than 5% level of significance for administration charges, and landing and parking fees and insignificance on safety fee. While, after GePG implementation the P-value of less than 5% level of significance for administration charges, and landing and parking fees and insignificance to safety fee but improved compared with before. Therefore, the study recommended that, the government should increase landing and parking fee to enhance more revenue under aviation industry. The government should improve its marketing strategies in aviation industry in Tanzania and abroad to attracts more airlines and individuals to land in the country due to the fact that Tanzania is the one of the beautiful country full of good tourist attractive places like mount Kilimanjaro, big national parks, like Serengeti national park,Ngorongoro,Manyara,Tarangire and together mining activities as Tanzania is the one of country which has valuable mineral like Tanzanite. Likewise, government should improve high quality services and increase administration charges to airline and its customers to enhance revenue collection in aviation industry together with improving safety policies to enhance security aviation industry and increase safety fee.
