A Dissertation submitted in Partial/ Fulfillment of the Requirements for Award
of the Degree of Master of Accounting and Finance of Mzumbe University,
Tanzania
This study on factors affecting revenue collections in local government authorities in
Tanzania was conducted using four out of seven recognised local government
authorities in Morogoro region, namely Ulanga District Council, Kilombero District
Council, Mvomero District Council and Morogoro District Council as study cases.
Many local government authorities have adequate revenue bases to finance the
current level of services, but collection levels are often low. The purpose of the study
was to establish the factors affecting revenue collection in local government
authorities and its objectives were to strengthen revenue collection and identify new
sources of revenue. The study focused on the effect of revenue collection rates,
weather condition and revenue outsourcing. Relevant literature was reviewed.
Employing quantitative research design the study targeted Revenue Collectors,
Planning Officers, Accountants, District Treasurers and Trade Officers who totalled
160. Using simple random sampling the researcher selected 80 respondents to
participate in the study. Data was collected using a structured questionnaire. Data
analysis was done with the help of Statistical Package for Social Sciences (SPSS)
version 20 and presentation was done in terms of frequencies and percentages in the
form of figures and tables. The study found that 63.8% of the participant agreed that
LGAs charges low revenue collection rates while 60% of the participant agreed that
weather condition is among the factor affecting revenue collection. Also, 77.5% of
the participants agreed that revenue outsourcing has an impact on revenue
performance and 60% agreed that there is ineffective implementation of bylaws. The
data were analysed by multiple regressions, using Independent Variable (Low
revenue collection rates (sig.0.000), the effect of weather condition (sig.0.602),
ineffective implementation of bylaws (sig.0.666) and Revenue outsourcing (sig.0.00)
and Dependent Variable (Revenue Performance). The regression model was better (R
- square = 69.5), but the overall relationship was significant (F = 42.629, p<0.001).
The study concluded that the use of LGAs manpower to collect revenue is one of the
strategies for improving revenue collection. Among others, the study recommended
that the LGAs should consider new sources of revenue instead of depending on the
existing sources to strengthen revenue collection.