Challenges Faced by Local Government Authorities (LGAs) in implementing strategies to enhance revenues: The case of Dar es Salaam Municipal Councils

Kimario, Prisca (2014) Challenges Faced by Local Government Authorities (LGAs) in implementing strategies to enhance revenues: The case of Dar es Salaam Municipal Councils. Masters thesis, The Open University of Tanzania.

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Abstract

The objective of this study was to identify the challenges faced by LGA’s in implementing strategies adopted to enhance revenue collections after rationalization of Local Government taxes. The study was carried out in Dar es Salaam municipalities, and found out that there is a gap that exists between LGA’s budgets and revenue collections which range from 5 to 8 percent. The conclusion was based on the results from the analysis of all respondents from the study. To cover this gap LGA uses some strategies like outsourcing of revenue collection to private collectors, introduction of revenue managers, integration of Database (KMC,IMC,TMC& TRA ) and review of by laws. In implementing these strategies, they also face the following challenges like some of the taxpayer unwillingness to pay tax, political interference, outsourced revenue retained by agents, and Loyalty challenge. Recommendations were made to the central government to take a leading role in monitoring the returns to the public by creating public awareness and education the importance of paying taxes for their own benefit. LGAs have to design and formulate policy standards which will be adopted, applied to effectively implement that will facilitate collection of enough revenue for development. They are also supposed to generate revenue from local sources rather than depending on central government grants. They are supposed to review bylaws, computerization of revenue management, outsource collection of some revenue to private agents, and strengthen revenue collection system, stronger punishment for council staff and agents found guilty of mismanagement of collected revenue. Lastly taxpayers should play their role of willingly paying taxes for their betterment of themselves and the public at large.

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