An Evaluation Of Thefactors Affecting Value Added Tax (Vat) Revenue Collections In Tanzania. A Case Study Of Tanzania Revenue Authority (Tra) Mwanza.

ABSTRACT

he study focused on the evaluation of the factors affecting the Value Added Tax revenue

llection v~ith the view of assessing the levels of taxpayers’ knowledge, the level of tax evasion

~d compliance since it was introduced. Moreover, the study investigated the effectiveness of the

LX administration in addressing the problem with particular reference to how effective is the

~xpayers registration system. effectiveness of VAT return filing and tax education services.

he study revealed that taxpayers are not registering voluntarily unless they believe that it is

~neficial for them to register, many taxpayers eligible for VAT registration are still not included

i the tax net, policymakers concentrating on incrcasing tax collections targets on known and

~dsting taxpayers. All these are due to ineffective registration system and inadequate tax staff to

ring more eligible taxpayers into tax net and broaden the tax net.

he study also showed that some taxpayers’ declaration in VAT returns are not correct and VAT

~lf-assessment is unreliable, tax e~ asion through non-issue of tax invoices or receipts are

mmon and the general public is not aware of the need to demand tax invoices or receipts when

urchasing goods. Tax education and audit have not enhanced the level of voluntary compliance.

he study recommends taxpayers education to enhance compliance to tax laws, tax education on

~turn filing, effectiveness of the tax registration system, dissemination of awareness to the

~neral public on the need to demand tax invoices or receipts when purchasing goods and the

eed to conduct tax audits with a view to detecting incidences of tax evasion.

he study leaves the room for further study such as zero rated supplies, Exempt supplies special

~iiefs, Tax evasion by small business operators who are not eligible for VAT registration, Tax

vasion of taxes and duties through under valuation of imported goods and tax evasion of taxes

ad duties through under valuation of imported goods and Tax evasion of taxes and duties irough smuggling across boarder stations.