The role of electronic payment on revenue collection in local government in Tanzania: a case of Kinondoni municipality.

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University of Dar es Salaam
This study investigated the role of e-payment in revenue collection in Kinondoni Municipal. In achieving this objective semi-structured questionnaire was distributed to revenue collectors and administrators by using simple random sampling procedure in which the total of 77 respondents were obtained. In order to answer research questions, data was analyzed by using descriptive statistics and linear regression. The study found that majority of the respondents had working experience of 2-5 years (37.7%). The study also showed that using e-payment in revenue collection by municipal, had positive outcome in reducing tax avoidance. It was further revealed that e-payment provided an additional competitive edge in the monitoring of revenue sources and improved the quality of financial reporting. The study also revealed positive linearity relationship between e-payment and revenue collection in terms of tax avoidance reduction, monitoring of revenue sources and financial reporting. The study indicated that all e-payment modes aligned with the reduction of tax avoidance. It was also established that only PoS contributed significantly to the monitoring of revenue sources through the elimination of funds diversion to individual accounts and a decrease of an issue of private and fake assessment of receipts. In addition, it was also revealed that improved quality of financial reporting was attributed to online banking and PoS, mobile money whereas credit/ debit cards did not contribute. It is recommended that in order to hasten the usage of e-payment system in revenue collection, it is crucial to address the identified challenges and conduct training to all tax collectors and taxpayers and GIS should be integrated with e-payment system to automate the process of allocating revenue sources.
Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HG1710.T34N236)
Revenue, Collectors and collection, Electronic funds transfer, Kinondoni municipality, Tanzania
Nahonyo, Z. M. (2018). The role of electronic payment on revenue collection in local government in Tanzania: a case of Kinondoni municipality. Master dissertation, University of Dar es Salaam.