Tax Policies And Revenue Perfomance: A Case Study Of Tanzania Revenue Authority, Kilimanjaro Region.

ABSTRACT

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 rE:lationship 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 non compliance in effort to improve revenue collection performance.