Keeping the Revenue Performance Ship Afloat: A Case of Tanzania Revenue Authority

Robert Wilfred Kyomo; Juma Buhimila

doi:10.51867/ajernet.6.1.36

Authors

Robert Wilfred Kyomo
robert_kyomo@yahoo.com
Mzumbe University, Dar es Salaam, Tanzania
Juma Buhimila Mzumbe University, Dar es Salaam, Tanzania https://orcid.org/0000-0001-5053-6071

Keywords:

Electronic Fiscal Devices, Development, Fairness, Ownership, Tax Payer Education, Transparency, Voluntary Payment of Tax

Abstract

This case study examines the challenges faced by the Tanzania Revenue Authority (TRA) in its efforts to modernize tax administration and increase revenue collection. It focuses on the recent events including the nationwide traders' strike in June 2024, which exposed deep-seated issues within Tanzania's tax system. The study explores the complex interplay between the TRA's mandate to increase revenue and the business community's concerns about oppressive and unclear tax practices. Through an analysis of documentary evidence and stakeholder interviews, the case identifies key issues including tax evasion, complexity in tax laws, resistance to technological innovations like Electronic Fiscal Devices (EFD), and the informal sector's integration into the formal tax system. The study draws on theoretical frameworks such as the Gordon-Li Model, Lindahl's Model to contextualize these challenges. The study employed the case study research design and the sample size of 5 respondents who were purposely selected. This Case Study found that the TaxTech Ecosystem Initiative is a revolutionary approach to tax administration that leverages blockchain technology, artificial intelligence, and community engagement. This initiative aims to create a more transparent, efficient, and equitable tax system. The study concludes with recommendations for successful implementation, emphasizing the importance of stakeholder engagement, technological investment, phased implementation, inter-agency collaboration, data security, and continuous monitoring and evaluation. It suggests that if successfully implemented, this initiative could not only transform Tanzania's fiscal landscape but also serve as a model for other developing nations facing similar challenges in tax administration. This case study contributes to the broader discourse on tax administration in developing countries and provides insights into innovative approaches to addressing longstanding challenges in revenue collection and fiscal policy implementation.

Dimensions

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