Assessment of government efforts towards promotion of tax compliance in Tanzania a case of Kinondoni Tax Region

This study aimed at assessing the effectiveness of government efforts towards promotion of tax compliance in Tanzania. In order to attain this objective, a survey of taxpayers was done around different locations of Kinondoni Tax Region in Dar es Salaam using a quantitative research design. In this study, both probabilistic and non-probabilistic sampling methods were used and data collection was done through questionnaires from taxpayer as primary data and documentary review or face to face interview with tax officers to obtain secondary data. The study found that the introduction of EFD has facilitated collection of tax from traders and simplified payment projection of normal flow of taxes on monthly basis by tax officials. However, this was set to be possible only if traders use EFD effectively. Furthermore, on improvement of taxpayer services and education programs, the researcher found that training program and content were useful as they equiped the taxpayers with the necessary skills to comply with tax requirements. However, taxpayer education officials raised major concern that even though seminars conducted are free of charge, most taxpayers aimed for this program do not participate because those who participate end up repeating on different courses offered, as a result TRA cannot reach its target to pass on different tax knowledge aimed at promoting tax compliance. The introduction of e-filing and e-payment systems, on the other hand was found to ease payment of taxes hence promoting tax compliance. However, these procedures have removed a crucial activity of face vetting returns before submission aimed at increasing tax compliance during filing of tax returns. It is recommended that, taxpayers should be made to understand tax compliance through training and education on tax laws so that they are encouraged to pay taxes promptly. More sensitization on taxation issues should be done to the public through mass media. It is further recommended that tax officials be trained on customer service to enable them serve well the taxpayers in a friendly environment that welcomes more taxpayers. In future, researchers should replicate this study to cover a larger part of the country, a study on self assessment system through e-filing of tax returns can be carried out to determine its effectiveness on enhancing tax compliance levels among traders.