Dissertation Submitted in Partial Fulfillment of the Requirements for Award of
the Masters of Business Administration (MBA) of Mzumbe University
The purpose of this field work was to find out the factors enhancing tax payment
compliance for medium taxpayers in the development of national economy. All this
have been done because the role of tax compliance in national economy is highly
considerable and tax collection situation is not satisfactory.
The study was conducted at Tanzania Revenue Authority, Kilimanjaro region. The
population of the study was respondents from various departments of the organization.
The researcher used judgmental and simple random techniques in getting sample. Also
various methods of data collection were used, i.e. questionnaire, interview, observation
and documentations.
The method of sampling employed was random sampling in which 67 employees and
12 head of departments to constitute a sample size of 79 which is equivalent to 44.6%
in this case study out of 177 population. Data was analysed in respect of the research
Question where the major intention was to validate the objectives of the study, both
quantitative and qualitatively methods were used.
Findings show that Tanzania Revenue Authority has many bottlenecks on factors
enhancing tax compliance in Kilimanjaro region. For instance, poor knowledge on tax
system applied, lack of patriotism among taxpayers, wrong perception of taxpayers, the
influence of VAT rates on VAT compliance, too many taxes, cumbersome procedure
involved in payment of VAT, the effect of customer care desk, corruption by tax
officers, and people selfish behavior. The respondents were ready with the system but
due to these setbacks and complexity of the system made tax compliance complex.
The following recommendations should also be considered; TRA should make tax
compliance environment smooth by continue educating the public on the importance of
paying tax, increase awareness to the public in motivating them to comply with tax
rules, educating TRA officials on ethical issues so that to avoid corrupt behavior in
TRA, and reduce number of taxes related to VAT to avoid tax complexity to taxpayers.