The analysis of effectiveness of value added tax (vat) special relief procedures

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University of Dar es Salaam
The aim of this study was to analyses the effectiveness of Value Added Tax Relief procedures granted to taxpayers as it was rumored that VAT special relief procedures are cumbersome and bureaucratic. To attain this objective an exploratory study was conducted in Dar es Salaam at Large Taxpayers Department and Domestic Revenue Department The study involved 68 respondents who included tax officials, tax consultants and tax payers. The results of the study reveals that, procedures to obtain VAT special relief were adequate but they are not properly followed and implemented by tax officials due to the understaffing problem in Tanzania Revenue Authority. Tax payers were also not satisfied with the time used to get their relief application, they are not trained on official tax procedures and they are not getting education on VAT Special Relief. Taxpayers from Domestic Revenue Department were also washing time in getting relief forms, they needed to go TRA physically to collect them. From these findings it is recommended that TRA should employ more staff in VAT Special Relief Department and it should also ensure that time to approve applications of tax payers is minimized up to within five days. TRA should also give their taxpayers official procedures of applying VAT Special Relief. TRA should also provide training to taxpayers and update them whenever they introduce some changes. It has also recommended that Special Relief Forms should be available in TRA website to make them available to taxpayers instead of going to TRA physically.
Available in print form, Eat Africana Collection, Dr. Wilbert Chagula Library,(THS EAF HJ5715.T34M44)
Value Added Tax (VAT), Taxation, Tanzania
Melkiory, B. A.(2008) The analysis of effectiveness of value added tax (vat) special relief procedures. Masters dissertation, University of Dar es Salaam, Dar es Salaam.