Factors Contributing To Low Non-Tax Revenue In Manyara Region: A Case Of Babati District

ABSTRACT

The study focused on assessment of “Factors Contributing to Low Non-Tax Revenue

in Manyara Specifically in Babati District”. It was guided by three objectives those are:

to examine factors contributing to low collection of Non-Tax Revenue, Problem

associated with poor collection of Non-Tax revenue and to determine the measures taken

by Babati .The non-tax revenue consists of registration fees, Fines forest royalty fees,

and penalties law violations.

A Sample size of (65) respondents was employed so as to get relevant and reliable

information concerning to the study and probability and non-probability sampling

procedures was utilized to get this sample. Primary and secondary data were utilized

whereby social survey and interview used as method of data collection. Also

questionnaire and interview schedule was utilized to get primary data. Data analysis

employed both qualitative and quantitative; whereby SPSS Version 16 also employed.

The investigation of this work reveals that factors contributing to low non-tax revenue

collection are High tax avoidance and evasion, Climate change, Outsourcing problem

Poor infrastructure, Weak administrative system, Informal selling of goods before

reaching to the market Dishonesty of Non-Tax Revenue, Narrow tax base, Difficulties in

identifying physical location of the business which may lead to low collection. On the

basis of the findings the study came up with various recommendations into Management

and all other stake holders in Babati for them to achieve their objectives and hence no

poor social services. The tax collectors should be highly motivated, adequate security

trying to organize politicians not to interfere in revenue collection; likewise, the masses

should be sensitized about the benefits of paying taxes.