Revenue collection and services delivery case study of Mogadishu Somalia

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Date
2015-10
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study sought to establish the impact of revenue collection on service delivery in Mogadishu Local Government, Somalia. The study objectives were; to examine the challenges Mogadishu faced in the collection of revenue, to examine how service delivery in Mogadishu local government could be improved and to establish the relationship between revenue collection and service delivery in Mogadishu local government. A cross sectional survey was used in the course of the study. Both qualitative and quantitative data was gathered in order to establish the relationship between the independent and dependent variables, so as to examine the impact of revenue collection on service delivery in Mogadishu Local Government, Somalia. The study comprised of 60 respondents as a target population where by 50 respondents were sampled and these were; 10 Local government accountants, 20 Revenue officers, 10 Cashiers and 20 Local peasants. Simple random approach was used during the study. Purposive sampling was also used to select only respondents for the researcher to attain the purpose of the study. Data was collected from primary and secondary sources using questionnaires and interviews. After collecting data, the researcher organized well answered questionnaire, data was edited and sorted for the next stage. The data was presented in tabular fonu, pie charts and bar graphs with frequencies and percentages. The study found out that there are inadequate capacity and technical skills to manage Local revenue collection in Local Governments. The problem is compounded by the fact that many workers within the Local Government lack the necessary academic qualifications. The study also discovered that it was also alleged that politicians pressure and influence the procurement committees to award tenders. The study further concludes that most rapidly developing economies especially in local governments lack the advanced analytic tools and databases necessary to flag and follow up on suspicious taxpayer behavior automatically. There is need for proper tax assessment. This will enable the taxpayers to know the amount of revenue they are supposed to contribute. This may involve analyzing the various tax bases within the Local Government. The masses should be sensitized about the benefits of paying taxes. For example, they should be enlightened that their contribution in form of taxes leads to effective service delivery. The Local Government authorities should privatize the collection of revenue. This will enable increased revenue (income) as the private firms will ensure that the loopholes in the tax system are bridged or purged.
Description
A research report submitted to the college of economics and management in partial fulfillment of the requirements for the award of Bachelor of Arts in Economics of Kampala International University
Keywords
Revenue collection, services delivery, Mogadishu Somalia
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