| dc.description |
Tax is the major source of revenues in both developed and developing countries like Tanzania. This study sought to investigate small scale entrepreneurs’ willingness to pay tax at enhancing Local Government revenue collection taking a case of Dodoma city council. Specifically, the study analyzed attitudes of small scale entrepreneurs on tax payment, assessed small scale entrepreneurs’ knowledge on tax system applied by the local government and investigated factors affecting tax payment for small scale entrepreneurs in the study area. Both qualitative and quantitative research approaches under cross-sectional survey design were employed. Furthermore, the probability and non probability sampling techniques were used to obtain data from 150 respondents were randomly selected from the population. The study has adopted the five-point Likert scale, multiple response and regression analysis. Data were collected through interviews, questionnaire surveys and documentary review methods. Findings have revealed that, willingness of small business taxpayers to pay tax depended on their attitudes on tax, noted on: justice in tax system, satisfactory returns from tax and corrupt government officials, with weighted mean score of 4.66, 4.57 and 6.26 respectively. Majority of the respondents had no knowledge on their rights and responsibilities as taxpayers (38.9%), tax equality (40.3%), productive tax (39.6%), filling tax forms and obligations (36.2%) and certainty as to where, to whom and time to pay tax (32.6%). Taxpayers also were noted to be unconfident with paying taxes due to high rate of tax imposed, disorganized management, education level, business experience and local method of estimating tax at (P<0.05). Therefore, relevant measures have to establish more accessible and transparent on the payment facilities, certainties of tax payment dates and use of fair and reasonable tax enforcement measures. |
|