A Dissertation Submitted in Partial Fulfillment of the Requirements for the
Degree of Master of Business Administration in Corporate Management
(MBA-CM) of Mzumbe University
This study intended to assess the cross-border challenge affecting revenue collection
performance in Tanzania, a case of Namanga customs station. Specific Objectives
included to explore and identify main cross border challenges affecting revenue
collection performance at Namanga, to classify the cross-border challenges according
to nature and importance in affecting revenue collection performance and to examine
the effect of cross border challenges on revenue collection performance at
NamangaCustoms station. A descriptive research design was employed using
interview and questionnaires as data collecting tools from 100 respondents.
The study identified several challenges affecting cross-border revenue collection
performance. These include ineffective trading regulations, inadequate accountability
among officials at the border, poor tax system and inequity, unregistered trade, and
lack of transparency among officials at the border, corruption at the border, and low
level of technology in detecting and prosecuting document electronically and tax
exemptions for imports of low valued goods. Moreover, the delay of goods at the
border, country lose trade and resources, cross border challenges cost the country
much to solve the problem, security problem as some people came with weapons,
declining revenue collection long vehicle queue due to Corona Virus Pandemic, loss
of country revenue through unpaid taxes smuggled goods and improper accounting
of foreign currency at the border by Tanzania Government has been identified as the
effects caused by cross border challenge and affected the revenue collection
performance.
The study recommended that that TRA should make more efforts and increase speed
in inspections and evaluation of correcting tax for the imported goods to raise a
collection of revenue to the maximum. The government through Tanzania revenue
authority to simplifying the border crossing by providing quick access to any
restrictions so that customers are attracted to services and therefore the collection and
voluntary repayment.