The study analyzed the legal framework governing local government taxation system with special attention on compliance with City Service Levy in Tanzania. The methodology adopted by this study is qualitative research method. The study employed both field and library search whereby relevant municipal tax laws were analyzed in the context of tax compliance and compliance with City Service Levy (CSL). Drawing from conceptual and legal framework, the study identified some of the legal challenges facing compliance with CSL in Tanzania. The study establishes that, there are some existing weaknesses with the By- Law taxing system which is currently used to impose and collect local government authority’s taxes which includes the CSL. Also, there is an imposition of multiple taxes on the same category especially on branches of corporate entities whose area of jurisdiction are located in different local government authority with their headquarters. This has led to compliance burden to taxpayers who are required to remit CSL to various local government authorities. Furthermore, there is poor coordination between the central and local government taxing system as Tanzania Revenue Authority is not responsible in imposing or collecting CSL. This has led to a wide disparity of CSL tax rate between the different local government authorities. The study recommends among others, that, the Local Government Finance Act should be amended to incorporate a centralized collection system of CSL, this will create a central point of data which will provide a strong tool for enforcement of CSL. Corporate entities with branches in other local government authorities, should remit CSL to the local government authorities of their headquarters or only one authority to be designated.
See Full PDF See Full PDFA Dissertation Submitted in Fulfillment of the Requirement for the Degree of Masters of Corporate Management of Mzumbe University
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The growth of Africa's towns and cities has outpaced local authority capacity in terms of management, infrastructure, and financing. Many African towns and cities are now facing a governance crisis. Accordingly, the capability and capacity of urban local government to provide basic services to a growing population have entered the core of the development debate. In particular, fiscal decentralization -
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Governments worldwide need resources in form of revenues to perform various functions both social and economic activities. Tax is the main source of revenue for any government and taxes are compulsory payments to government without expecting direct benefit or return by the tax payer – not based on direct quid pro quo principle. Iringa Municipality council has been facing various challenges which make it not to attain the projected targets put. The general objective of the study was to assess challenges facing Local Government Authorities towards implementation of strategies to enhance revenue collection. Case study research design was used in this study. A sample size of 50 out of 90 respondents (i.e. tax payers and TRA employees) was involved. Questionnaires were used to get information from the respondents. Data collected were analyzed descriptively by using SPSS computer software. The findings show that 96% of the respondents reported the availability of taxpayer resistance and low tax morale on part of the citizenry which may result into the reduction of revenue collection. 82% of the respondents agreed that availability of corruption including embezzlement of revenue is one of the challenges which hinder revenue collection. However, 80% of the respondents agreed that by establishing more accessible and transparent payment facilities will enhance tax collection. Also respondents asserted that revenue collectors provide no confidence in tax payers. Thus the study recommends that further studies need to be done on the following issues; (i) what is the perception of taxpayers regarding the misuse of revenue collected by the authority in relation to revenue evasion? (ii) To what extent has Iringa municipality council been able to address revenue evasion?
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SSRN Electronic Journal
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Journal of Financial Management of Property and Construction
Purpose Inter-organisational cooperation in revenue collection has received limited attention in the tax administration literature. Recent experiences from Tanzania offer a unique opportunity to examine opportunities and challenges facing such cooperation between central and local government agencies in a developing country context. The administration of property taxes (PT) in Tanzania has been oscillating between decentralised and centralised collection regimes. This paper aims to examine how inter-organisational cooperation affected implementation of the reforms. Design/methodology/approach The study draws on data from a variety of sources of information collected during a series of fieldworks over the past decade. Semi-structured interviews were conducted with a wide range of stakeholders, including senior managers and operational staff of the national and municipal tax administrations. The interviews focused on the background and objectives of the property tax reforms, working r.
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