Factors affecting own source revenue collection in local government authorities in Tanzania: a case study of Newala District Council in Mtwara Region

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University of Dar es Salaam
The failure of local Governments in the provision of essential basic services has been attributed to poor revenue collections. This research was conducted to identify factors underlying the poor collection from own source. Primary and secondary data for the research were collected by using interview, questionnaires technique (Both structured and unstructured) and documentary review. In depth discussion with the District Commissioner, District Executive Director, District Council Treasurer, District Planning Officer, and District Human Resource Officer, the Ward Executive Officers and revenue collectors were conducted. Data was analyzed quantitatively by using SPSS version 16.0. In the first stage of the findings were presented through the use of descriptive statistics including frequency distribution tables, pie charts and bar charts, which present simple statistical results obtained from the study. To ensure the reliability of the data, Cronbach’s alpha coefficient (Cronbach, 1951) was computed from each category of the data collected in the Likert scale. The findings of this study revealed that general factors that affect the own source revenue collection in LGAs are corruption, tax evasion, intermediaries, concealment of own source revenue and poor revenue supervision. Other factors that affect own source revenues are poverty and unemployment, poor infrastructure and too much dependency on central government transfers. Also own sources revenue collection in the specific circumstances of Newala District Council has been identified which are produce cess, service levy, other income, tender application fee, market fee, dividend, hotel levy, disposal of assets, bus stand fee, house rent, fines and penalties, radio fee, survey fee, car rental charges, license fee and land rent. Findings also show that there are significant levels of satisfaction among respondents about various information regarding own source revenue collection in Newala District Council. In response to the statement whether the extent to which the procedures and guidelines are clearly explained and understood , 59% of the respondents showed either low extent or lowest extent levels of understandability while 41% showed responses ranging from neutral to greatest extent. Based on the findings of the study, a number of recommendations are made which are considered useful in improving LGAs own source revenue.
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Revenue, Local government authorities, Newala district council, Mtwara region, Tanzania
Mlangwa, A. M (2011) Factors affecting own source revenue collection in local government authorities in Tanzania: a case study of Newala District Council in Mtwara Region. Master dissertation, University of Dar es Salaam. Available at