ASSESSMENT OF FACTORS HINDERING EFFECTIVE TAX REVENUE COLLECTION IN TANZANIA: A CASE OF TANZANIA REVENUE AUTHORITY (TRA) - HQ

Abstract

ABSTRACT The study assessed factors that hinder effective tax collection in Tanzania. The study was guided by the three specific objectives. The first objective of the study aimed to determine the effect of political environment on effective tax revenue collection in Tanzania, the study further examine the effect of Tax policies on effective tax collection in Tanzania and lastly the study focused to identify the impacts of support systems on effective tax collection in Tanzania. The study employed mixed research approach; case study design was employed a sample size used was 111 respondents was chosen for this study. SPSS were employed to analyses data. The study revealed that the political environment has a significant impact on normal business operations in Tanzania. A majority of respondents strongly agreed that the political situation significantly influences business operations, while a smaller proportion disagreed with this notion. It was also revealed that, the complexity of taxation laws was highlighted, with a significant proportion of respondents agreeing that tax laws are hard to understand and interpret. Tax laws were perceived to facilitate the administration of organizations by some respondents, while others disagreed. The study further found a positive view of Information Technology (IT) in enhancing productivity and easing tax compliance. The study sheds light on the crucial role of the political environment in influencing effective tax revenue collection in Tanzania. The findings underscore the significance of a stable political climate in fostering favourable conditions for businesses to thrive. The study recommends policymakers to prioritize create and maintain a stable political environment. A stable political climate fosters investor confidence and provides a conducive atmosphere for businesses to operate and flourish. Measures should be taken to minimize political uncertainties, especially during election periods, to prevent potential disruptions to business activities.