| dc.description |
The purpose of this study was to assess the factors affecting the revenue performance of VAT in Tanzania. A conceptual framework was developed using the indicators of the two aspects that is; the Factors affecting the revenue performance of VAT and the Revenue performance of VAT. The specific objectives of the study were to identify the administrative bottlenecks in TRA, to identify the effects in the VAT law and Regulations and at the end to suggest ways towards improvement of the revenue performance of VAT in Tanzania. A case study design was adopted. Sample sizes of 100 respondents were selected from Ilala, Kinondoni and Temeke tax regions. Self- administered questionnaires and interviews were used to collect data from all the three tax regions in Dar-es-salaam and the findings are presented in tables and charts. However, the multiple regression method using the SPSS software was used to analyze the data. Findings for this study were drawn from the administrative capability of TRA and the VAT law and Regulations. The TRA administration was analyzed in areas of manpower, taxpayer identification, taxpayer sensitization, taxpayer assessment and corruption and embezzlements. The findings revealed that; the means of fighting corruption and embezzlements affect the revenue performance of VAT positively. The VAT law and Regulations were analyzed in areas of registration threshold, VAT exemptions and VAT refunds. The findings revealed that, the perpetuation of VAT exemptions affect the revenue performance of VAT negatively as the government forgoes a lot of funds through these exemptions.
There is a need to strengthen the means of fighting corruption and embezzlements so as to minimize chances of such acts. Legal actions should be taken to people found guilty. There is also a need to review the VAT Exemptions, minimizing them so as to achieve more revenue collections. |
|