Electronic Revenue Collection System for Improving Local Government Authorities Revenue in Tanzania: A Case of Moshi Municipal Council, Kilimanjaro Region

Abstract

The aim of the study was to evaluate whether electronic revenue collection systems improves Municipal revenues. The study specifically aimed to determine the effective sources of revenues; to compare the revenue collection before and after the introduction of electronic revenues collection system; and to analyze the challenges encountered with the use of electronic revenue collection system. A descriptive research design was adopted in conducting the study. The study sample was 79 respondents whereby simple random sampling was employed. Data were collected using questionnaires to provide quantitative data. Data was analyzed using descriptive statistics and Pearson correlation coefficient. The findings revealed that the major sources of revenues to Municipal Council are Guest house/hotel levy, Land rent fees, Markets fees, Intoxicating liquor licenses, Abattoirs charges, Revenue from agricultural and forestry products and Meat inspection charges. The study finding revealed that electronic revenue collection system improves Municipal revenue collection in the financial year 2015/2016 compare to that of 2014/2015 revenues. The major challenges encountered the e-payment is access to internet and lack of civic education to revenues payers on the use of online payments. The study concludes that online revenue collection system gives accurate revenue computations to a very great extent and the revenue payers is satisfied with the electronic revenues collection service which assured no queuew is experienced on revenue due dates. The study recommends to the Municipal officials that it‘s high time for Moshi Municipal Council to put much efforts to encourage revenue payers to adopt electronic revenue collection system as the findings shows it has reduced queuing and increased revenue. Also civic education should be provided to other revenue payers who did not registered in order to be aware and help the Municipal to improve their revenues collection status.