A Dissertation Submitted in Partial Fulfillment of the Requirements for Award of the Degree of Master of Business Administration (MBA) of Mzumbe University 2014The study on tax collection tax collection practices in Tanzania was conducted at Kinondoni Municipality. The objectives of the study were; to identify methods used to collect revenue; to examine the contribution of tax on poverty alleviation and to determine challenges in tax collection. A case study design was used, a sample of 63 respondents was involved. Data collection methods were interview and documentary analysis whereas data collection instruments were questionnaire, interview guide and documentary analysis schedule. Data were analyzed by using SPSS. The study found the study found majority of the respondents (61.7%) identified Flat rate property tax system as the major method for collection of tax revenue. Also, the study found tax collection play significant role on availability of social services. Moreover, the study found majority of the respondents (50.8%) identified the provision of tax education will improve tax collection. The study concluded that there are various methods used in collecting tax. These involve outsourcing revenue collection and flat rate property tax system. Also, the study concluded that Tax collection play significance role in alleviating poverty. Tax collection facilities, availability of social services, promote equality and financial support. Finally, the study concluded that to improve tax collection, there is a need to provide education to tax payer, train tax collectors and computerize tax collection system. The study recommended that, there is a need to train revenue collectors, the authorities should be further sensitized about their role. For example through seminars, and others should be given scholarships by the municipal to go for further studies and acquire more skills. This will help to check on inefficiency due to inadequate education.