The Factors Affecting Tax Compliance in the Timber Sector in Makambako District.

Abstract

Tax noncompliance signifies some of the confusing glitches facing many countries including Tanzanian, thus why the government formed Tanzania Revenue Authority (TRA) to assess, collect, and account for all central governments‟ revenue. Apart from all strategies in place, tax non-compliance still exists in some sectors such as timber, and hence causes a shortage of revenue for government expenditure. Therefore, this study assessed the factors affecting tax compliance in the timber sector in the Makambako district. The study uses both quantitative and qualitative research designs, the purposive sampling was employed to obtain 155 respondents. The data collected were analyzed by using descriptive analysis. The findings show that tax non-compliance is caused by various reasons such as negative perception, unfair tax estimation, unfair tax procedures, unfair treatment of taxpayers during timbers transportation and tax collection, lack of tax education, unfair tax laws, and lack of tax knowledge. The presence of the mentioned stimulus leads to tax non-compliance which reflects the loss of government revenue and creates a negative atmosphere in the sector. Therefore, tax education should be given to taxpayers and tax officials, especially law enforcement practices.