ABSTRACT
This study examined tax revenue instability, and its consequences in Tanzania from
1996 to 2015. To identify the determinants of revenue stability, this study adopted
case study analysis. The study mainly based on secondary data maintained by the
Tanzania Revenue Authority (TRA) and World Development Indicators (WDI). The
dependent variables in this study are Public spending and Public Investment which
have regressed against revenue instability as an independent variable. Overall tax
instability was calculated among tax variables using the standard deviation approach.
Eventually, the study found that there have been oscillations of revenue against the
level of Government spending during the period under review. The total tax revenue
oscillated from 2.62 in years 1996/1999 to 2.42 in years 2012/2015; while the
Government spending as well oscillated from 3.1 to 3.09 over the same period.
Corruption among tax officers, tax exemptions to some tax payers, negative
perception on taxes by some tax payers and inadequate tax knowledge among tax
payers have been identified as reasons for tax revenue instability. Hence, the study
established that the instability of tax revenue results to the instability of public
spending and public investment thus, with low revenue collection, public goods and
services as well as public investment will be inadequately financed. Finally, the
Government through policy makers is advised to set out policies that will enhance
stable revenue collection through establishing corruption free movements,
disseminating knowledge among tax payers and reviewing tax laws to minimize
avenues for tax exemptions; these measures altogether will minimize revenue
instability and enhance adequate and sustainable public spending and investment
level.
SARISTIDES, M (2021). Tax Revenue Instability In Tanzania From 1996 To 2015 - Causes And Consequences. Afribary. Retrieved from https://afribary.com/works/tax-revenue-instability-in-tanzania-from-1996-to-2015-causes-and-consequences
SARISTIDES, MUYENGI "Tax Revenue Instability In Tanzania From 1996 To 2015 - Causes And Consequences" Afribary. Afribary, 26 Apr. 2021, https://afribary.com/works/tax-revenue-instability-in-tanzania-from-1996-to-2015-causes-and-consequences. Accessed 06 Nov. 2024.
SARISTIDES, MUYENGI . "Tax Revenue Instability In Tanzania From 1996 To 2015 - Causes And Consequences". Afribary, Afribary, 26 Apr. 2021. Web. 06 Nov. 2024. < https://afribary.com/works/tax-revenue-instability-in-tanzania-from-1996-to-2015-causes-and-consequences >.
SARISTIDES, MUYENGI . "Tax Revenue Instability In Tanzania From 1996 To 2015 - Causes And Consequences" Afribary (2021). Accessed November 06, 2024. https://afribary.com/works/tax-revenue-instability-in-tanzania-from-1996-to-2015-causes-and-consequences