Abstract:
In many countries. Local governments seem to raise whatever taxes. fees and charges they
ate capable of raising. Often without worrying excessively about the economic distortions
and distribution effects that these instruments may create. Local government continues to
have limited autonomy over own sources of revenue. The revenue collection hag been
fluctuating, but the reasons are not proved by empirical evidence. main objective of this
study was to assess factors affecting revenue collection in Local Government Authorities
citing the case of Moshi District Council, Tanzania. The study is based on Economic
deterrence models. Case study design was used in this study. Data were collected from 80
respondents from various levels of revenue collection. The findings revealed that the Moshi
District council revenue came from five sources that include agriculture products, coffee
crop cess, service levy, small market at village level called "magulio fees" and business
license. The findings also show that higher percent in revenue came from agricultural and
forestry products. The findings show that revenue collection is done by many, but most of
revenues are collected by District Council officials and small percent of revenue is collected
by outsourced agents. Tax payer's perception on revenue collection findings indicated that
the willingness of tax payers in paying tax was at low extent. The findings also showed that
area of priority revenue use were not the area of interest to tax payers. Improved revenue
collection is possible through improved technology and education and training as well as
sensitization to tax payer. The study recommends that the council should develop adequate
plans for revenue collection which cover sources of revenue. The council should revise the
existing by-laws ang effect amendments to reflect the current development especially,
revenue collection reforms measures.
