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The study was carried out to assess factors that affect tax compliance in Local
Authorities in Tanzania with particular emphasis on Sumbawanga District Council.
The study was prompted by the persistent revenue collection shortfalls that have
made it difficult for Sumbawanga District Council to fully implement its budgets.
The study employed a descriptive study design on a sample size of 51 respondents,
who were selected using purposive sampling from Sumbawanga District Council
officials and revenue collecting agents, and simple random sampling from traders of
agricultural produce. Data from this source were supplemented by secondary data.
Data were gathered using a self-administered structured questionnaire.
The study found five major factors that affect tax compliance. These include:
inappropriate enforcement, complexity of the by-laws, behavioural attitude,
unsatisfactory return in form of service delivery, and absence of trustworthiness in
the local government. This result implies that the council is not doing well in tax
collection. In order to overcome the problem of non tax compliance, the following
were the major recommendations: improvement of service delivery such as roads,
health services, education, water etc.; enforcement of tax laws; provision of tax
education to tax payers and the citizens as a whole.
Basing on the findings of the study, it is recommended that officials at low levels
involved in tax collection be trained about taxation, citizens should be educated on
the importance and benefits of taxes, the collected tax revenues should be remitted to
head office within the month it has been collected. Furthermore, it is recommended
that tax collectors be motivated basing on good work incentives.
Similar study is recommended in other council because this research was a case
study therefore its findings cannot be generalized, and another area of research is to
establish reasons for failure of councils to collect tax |
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