Equity principle in the Tanzania tax system: From taxpayers’ point of view

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University of Dar es Salaam
Despite government's efforts to improve the tax regime, it has been observed that equity principle is not well addressed in the Tanzanian tax system. The general objective of this study was to investigate taxpayers' perceptions on equity in taxation of income tax from business income as compared to taxation of income tax from employment. The study surveyed taxpayers who are business owners and those who are employed so as to determine their perception on income tax equity, fairness and their bearing on efficiency of administering income tax. The study revealed that there is a significant difference in amounts of taxes paid from employment income compared to the amount of tax paid from business income. It was also revealed that taxpayers' perceptions on income tax equity have a positive correlation with their perceptions on efficiency of income tax administration. The study concluded that there was a widespread feeling among salaried workers that they bear the burden of taxpaying more than business owners with similar incomes. Also it was concluded that there is no transparency in assessment of income tax and that many taxpayers do not know the basis for which their income tax liability is arrived at that necessary steps should be taken to address issues of income tax equity and the importance of making sure that the whole process of income tax assessment is transparent and is understood by taxpayers.
Available in printed form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HJ 2351.7.T34 K3 )
Taxation, Tax administration and procedure, Developing countries, Tanzania
Mzamiru, K.A (2005) Equity principle in the Tanzania tax system: From taxpayers’ point of view.Master dissertation, University of Dar es Salaam, Dar es Salaam.