THE EFFECTS OF REGIONAL CUSTOMS POLICIES AND REGULATIONS ON REVENUE COLLECTION IN TANZANIA

Abstract

The study was conducted to assess the effects of regional customs policies and regulations on revenue collection in Tanzania. Specifically, the study aimed at determining the regional customs policies and regulations affecting revenue collection in Tanzania, establishing the effects of trade liberalization on revenue collection in Tanzania, and assessing the challenges facing the Tanzania Revenue Authority in implementing international and regional customs policies and regulations. This was a cross-sectional study, where respondents were obtained using the Purposive sampling technique, and a total of 80 respondents were included from Namanga border post, Tunduma border post and Dar es Salaam port, and Inland Clearance Depot in Dar es Salaam. Questionnaires, interviews, and document reviews were used as the main tools for collecting data. The findings revealed that the World Customs Organization through the Revised Kyoto Convention, SADC as well as the EAC protocols’ provisions on the dutyfree, free movement of people, goods, and products reduce the amount of imports revenues in Tanzania. The study concludes that there is a significant influence of regional customs policies and regulations on revenue collection. Also, it was found that customs laws, policies, and regulations are not the main factors lowering the imports duties; instead, there are many more factors such as political interference, Technological advancement, Low-quality products imported, lack of training, and low understanding of regional integration and trade liberalization among employees at the border posts are some challenges facing TRA customs at the Border Posts. The study recommends that the government of Tanzania reduces the number of goods and services that are imported without paying any tax; review the agricultural products that must pay tax, and which must be duty-free. TRA organizes frequent training to employees to increase their understanding of the laws, policies, and regulations governing customs in regional groupings. TRA strengthens the tax evasion department to control the illegal entry of goods and products in all Borders in the country.