A Dissertation submitted in Partial fulfillment of the Requirement for the
Award of the Degree of Master of Business Administration ( MBA-Corporate
Management) of Mzumbe University
Governments world wide need resources in form of revenues to perform various
functions both social and economic activities. Tax is the main source of revenue for
any government and taxes are compulsory payments to government without
expecting direct benefit or return by the tax payer – not based on direct quid pro quo
principle. TRA Morogoro has been facing various challenges which make it not to
attain the projected targets put. For example, in 2011/12 the targeted revenue was
Tsh 21,012,844,999 with the actual revenue being Tsh 20,101,569,981 (equivalent to
95.6% or a difference of 911,275,018). The general objective of the study was to
assess the challenges facing revenue collection at TRA Morogoro.
Case study research design was used in this study. A sample size of 32 out of 90
respondents (i.e. tax payers and TRA employees) was involved. Interview and
questionnaires were used to get information from the respondents. Data collected
were analyzed descriptively by using SPSS computer software.
The findings show that direct taxes as reported by 100% of the respondents were
collected by TRA through the assistance of debt management and compliance section
which are responsible for the provision of guidance to taxpayers. However, 80% of
the respondents reported the availability of taxpayer resistance and low tax morale on
part of the citizenry which resulted into the reduction of revenue collection due to the
availability of low level of tax knowledge by tax paying community. Furthermore,
82% of the respondents argued for the application and enhancement of block
management system to categorize taxpayers in order to facilitate their monitoring
process as to reduce no filers, facilitate collection of arrears and proper assessment
while enabling them pay tax in a cost effective way.
It concludes that improving the citizens’ access to and right to information on taxes
collected and how revenues are spent was vital and needed to be clearly given to the
public in order to avoid the citizens’ feeling that they receive little in return from
revenue paid. The researcher argues for revenue collection capacity enhancement
through staff enhancement and enrichment while facilitating taxpayers with
education and establishing more accessible and transparent payment facilities in
order to minimize revenue leakages.