Ismaili, Hamza2019-11-252020-01-082019-11-252020-01-082010Ismaili, H. (2010) A comparative study of vat regimes of Tanzania and Kenya: the extent to which VAT contributes to the GDP of these countries, Master dissertation, University of Dar es Salaam, Dar es Salaamhttp://localhost:8080/xmlui/handle/123456789/6344Available in print form, East Africana Collection, Dr. Wilbert Chagula Library, Class mark (THS EAF HJ5715.T34I75)This work attempts to traverse through legal and non legal problems causing underperformance of VAT in Tanzania and factors making proper performance of VAT in Kenya. The study used both primary and secondary data where library research and oral unstructured interviews were conducted. The research has found that there are many problems especially in Tanzania which cause its underperformance as compared to Kenya. Among the findings of this study include: non reflection of the principle of fairness in the VAT Acts; unfettered powers of Ministers responsible for VAT especially in Tanzania; failure to capture taxable transactions by the law, non-inclusion of financial services as taxable supplies; increase of the exempt, special reliefs and zero rated supplies; inadequacy collection of tax arrears; inadequacy of penalties; poor auditing and fraudulent activities by taxable persons; lack of peoples’ awareness on the principles governing operationalization of VAT, taxable persons’ non compliance and inflationary effects of VAT. The conclusion includes various recommendations for effective performance of VAT in Tanzania which inter alia, are: - introduction of electronic tax registers; introduce withholding VAT; improving e-filing services; conducting sensitization campaigns to taxable persons and tax payers; increasing regular audits; and conducting of independent research to explore other weaknesses of VAT law in Tanzania.enValue added taxtIndirect taxtTanzaniaKenyaThesis