The Influence of Citizen Awareness and Willingness on Revenue Collection in Local Government Authorities: Evidence from Temeke Municipal Council, Tanzania.

Abstract

The study investigated the effect of citizen awareness and willingness on tax compliance and revenue collection among local Government Authorities specifically in Temeke Municipal council. Design/Methodology/Approach: The study was quantitative in nature employing a survey design. The study contacted a sample of 100 respondents who were obtained conveniently and purposively. These included employees, normal citizens and business persons. Data were collected through questionnaires and interviews and were analyzed by using descriptive and regression analysis. Findings: Findings of the study indicate that both citizen awareness and willingness have a statistically significant effect on tax compliance and revenue collection in Temeke municipal council (R2 29.1 and P = 0.001 < 0.05 and R2 30.1 and P = 0.003 < 0.05 for awareness and willingness respectively. Implications/Research Limitations: The study was conducted in Dar es Salaam and specifically in Temeke Municipal council. Dar es Salaam was selected because it is a commercial metropolitan with many businesses. Practical Implications: Municipal officers to be honest and fair in assessing taxes and administering taxes. This will raise the level of willingness among citizens. Social Implications: The study recommends that Temeke municipal council invest in awareness campaigns and create a mutual relationship between its workers and taxpayers. Originality/Value: Citizen awareness and willingness to tax compliance framework will lead to maximum tax compliance which will result in increased revenue collection, positive and strong relationship between payers and collectors, observance of deadlines and voluntary payments.