Tax policies and revenue performance: a case study of Tanzania revenue authority, Kilimanjaro region

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Kampala International University, College of Economics and Management
The study was carried out at Tanzania Revenue Authority, Kilimanjaro region as a case study, in an attempt to find out the tax policies on revenue performance. In this study revenue collection performance is the measure of government efforts to collect tax revenue as percentage of GDP. The objective of the study was to investigate the relationship between tax policies and revenue collection performance in Tanzania. To examine advantages of adopting good tax policies, to establish challenges faced when implementing these policies towards positive or negative revenue performance and finally to propose possible ways to overcome the challenges faces in implementing tax policies on the revenue performance in Tanzania. The study adopted both qualitative and quantitative approach in capturing the correct perception and news of the respondents for the successful of the study. The researcher also used questionnaires and interview as survey research technique in gathering data relevant to the study. This design based on a descriptive and explanatory research design with the aim of identifying the tax policies employed, establishing the revenue collection levels and the relationships between tax policies and revenue collection performance. Results of the study indicated that revenue collection levels are still low in Tanzania in comparison to selected sub Saharan African countries. It is found out that tax administration affect revenue performance. Also a large substantial informal sector is found to be playing a big role in as far as the levels of revenue is concerned in Tanzania. The recommendations of the study are that the existing tax policies are to be revised to broaden the tax base, simplify the tax structure, abolish of export related taxes. TRA should be independent to avoid external influence that otherwise would hamper the administration of the tax policies. The government should also render quality tax payers services, to encourage voluntary compliance of tax laws, detect and penalize noncompliance in effort to improve revenue collection performance
A Dissertation Submitted to the School of Business and Management in Partial Fulfillment of the Requirements for the Award of Bachelor's Degree in Business Administration of Kampala International University
Tax policies, Revenue performance, Tanzania revenue authority, Kilimanjaro region