Effectiveness of outsourcing tax collection in Tanzania

The study analyzed he effectiveness of outsourcing in Tanzania, using a case or Tanzania Revenue Authority (TRA). The objectives of the study mere to assess the level of revenue collection prior and after outsourcing, level of risk reduction and level of customer satisfaction after outsourcing in TRA. This study employed a descriptive research design. It was mainly based on primary data that was collected through semi-structured questionnaire and supplemented by secondary data from review of literature on revenue collections in Tanzania. The findings show that level of revenue collection has improved tremendously; the risks prior faced by TRA were reduced to a greater extent and the level of customer satisfaction improved to a great extent compared to pre-outsourcing period. Bases on the research findings and discussions, we have seen that the risks prior faced by TRA were completely eliminated, revenue collection increased and the level of customer satisfaction increased as well. This study was done using data from Dar es Salaam only. Further study could be done on the same topic and sample survey to be conducted in the whole country to generalize what was found from the small sample.