A DissertationSubmitted to the School of Business In Partial fulfillment of the
Requirement for the Award of Masters of Science in Accounting and Finance of
Mzumbe University
The study examines the influence of taxation in local government performance. The
three objectives examined include the factors affecting government performance, the
relationship between taxation and local government performance together with the
reason to why taxation and local government performance are related to each other
The information was collected by administering 60 questionnaires to the investors,
Kinondoni Municipal staffs, tax collectors and tax payers. The data collected from
the questionnaire were coded using the SPSS software package and the information
was analyzed by using descriptive statistics and the regression analysis. The findings
from this study were as follows. First, the findings revealed that taxation was the
major factor affecting local government performance as compared to other variables.
Secondly, the findings revealed that local government performance has significant
relationship with taxation. Thirdly, the findings demonstrate in order for taxation to
have the impact in the local government performance there should be a well managed
tax collection system to enhance collection of more revenue.
The study recommends that KMC should create a coordinated taxation system that
will enhance proper planning and implementation of various projects with spillover
effects to the local community found in the area.