Dissertation (Master of Business Administration)The study was aimed at investigating the challenges facing LGA’s in implementing local government tax reforms to enhance revenue collection. The study was carried out in Mpwapwa District Council (MDC) as the case study. The specific objectives were (i) to identify challenges facing LGAs in implementing local tax reforms;(ii) to understand strategies being implemented by LGAs to enhance revenue collection; and (iii) to evaluate effectiveness of strategies adopted by LGAs to enhance revenue collection. A cross -sectional research design was adopted. The sample size of 70 respondents was obtained through purposive sampling techniques. The study used qualitative data methods; the collected data from the respondents were analyzed by content analysis in order to achieve the objectives of the study. The findings revealed that the challenges facing LGAs in implementing local tax reforms were low tax base, low collection rates, tax evasion and low awareness level of taxpayers. Strategies being implemented by MDC to enhance revenue collection were establishment of taxation training, establishment public awareness campaign, using of integrated payment system like point of sale (POS) as well as creation of check points and gates-barrier for revenue collection. The effectiveness of strategies adopted by LGAs to enhance revenue collection were effective because there are an increase in revenue collected due to strategies which are implemented. It is recommended from the study that the government of Tanzania (GOT) together with MDC should make sure they create public awareness and education to the importance of paying taxes and amend legal framework for the LGAs benefit.