Effects of modernization programs on revenue collection

The overall objective of this study was to study ‘the effects of modernization programs in revenue collection as a result of implementation of tax reforms programs under Tax Administration Project (TAP) in Tanzania Revenue Authority taking Customs and Excise department as a case study. Specifically the study aimed at identifying the extent to which the Customs and Excise Department has achieve to increase revenue collection as a result of implementation of modernization strategies. Trend analysis was conducted for the period 2004 to 2008 and this period was considered by this study to be a period following massive and numerous reforms in customs Department. However, the study adopts an intra-firm comparison or sometimes known as time series technique, which entails comparing the operational efficiency of a single firm. The study found out that Customs and Excise Department achieved to its objective of collecting at 100% and above per year immediately after implementation of modernization programs. However, the study has revealed a number of problems facing revenue collection process also give recommendation and solution on issue related to revenue collection process such as establishing interface with all key players in cargo clearance system, encourage importers and clearing agents to prelodge their entries, strengthening post clearance audit and imposing heavy penalties to habitual offenders. In addition to that suggests the different control measure in order to increase efficiency and reduce tax complains as well as a further area for research work to be done.