Factors affecting performance of revenue collection in local authorities: the case of Meatu district council.

LGAs collect revenue from different sources of revenue. The revenue collected is used to provide social services such as health, water and education to the public. It is expected that if enough revenue will be collected then more social services will be provided to the public and vice versa. However, most Districts experienced poor performance of revenue collection in spite of the fact that there are initiatives and measures taken to make sure good performance of revenue collection is maintained. The purpose of this report was to provide a framework which will be used as guidelines by practitioners such as management to determine the reasons behind poor performance of revenue collection in LAs. Meatu district council was used as a case to conduct the research. A sample of 100 individuals in which data was collected was chosen from the district. Questionnaire, Interview, Observation and Documentary Review were used as techniques for data collection. Information collected was analysed by using SPSS. The findings showed that low level of satisfaction of revenue collectors, low level of and accountability, inefficient control, political pressure, resistance from tax payers and lack of clear tax design criteria were factors affecting performance of revenue collection. This study recommended that in order to improve performance of revenue collection the following issues should be considered; redesigning the current revenue structure, considering alternative sources of revenue, reforms of revenue policy, considering other valid goals, clear policy on compensation and transparency enhancement.