Effectiveness of E-Filing System on Improving Tax Collection in Tanzania: A Case of Ilala Tax Region

M. Jumanne and A. Mrindoko ()
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M. Jumanne: College of Business Education
A. Mrindoko: College of Business Education

A chapter in Sustainable Education and Development – Sustainable Industrialization and Innovation, 2023, pp 763-783 from Springer

Abstract: Abstract Purpose: The purpose of this study was to investigate the effectiveness of the e-filing system in improving tax collection in Tanzania. Design/Methodology/Approach: The study was conducted in Ilala tax region in Ilala district, Tanzania, which comprises four (Tanzania Revenue Authority) TRA tax centres namely, Buguruni tax centre, Samora tax centre, Shaurimoyo tax Centre and Mnazi mmoja tax centre. This study was conducted in all four tax centres. The study adopted cross-sectional descriptive design where a mixed approach was applied to collect qualitative and quantitative data using questionnaires and interview guides. The study used both primary and secondary, and the sample size was 100 taxpayers. Descriptive statistics and content analysis were used to analyse quantitative and qualitative data respectively. Findings: The findings show that e-filling had increased tax submissions in Ilala tax region. The findings show that there is high acceptability of e-filing as a tool which has enhanced tax return submissions. Moreover, the findings of this study acknowledge e-filling to be effective in tax and duties collection at Ilala tax office. In addition, the study found that e-filling had enhanced the convenience of taxpayers. In these taxpayers were found in agreement that e-filling is reliable, easy to use, accessible, reliable, accurate and efficient in the submission of tax returns. Also, the findings indicate that e-filing has increased tax compliance as it reduces the cost of compliance. Implications/Research Limitations: This study had some limitations which warrant rectification in future studies. Firstly, this study was conducted in a single tax correction region of Ilala, Tanzania. Therefore, future studies should consider expanding the geographical area by covering more than one tax region. Also, this study used only descriptive statistics which cannot estimate of causal-effect relationship. To gauge the effectiveness of e-filling on tax collection future study is suggested to apply inferential statistics such as regression and structural equation modelling, which are powerful models to predict causality. Practical Implications: The findings of this paper would be useful as will awaken the Government and other institutions dealing with revenue collection to make it mandatory for tax submission to be done using an e-filling system. The findings of this study are expected to help TRA in assessing the e-filing system and make sure the current e-filling system is improved for an efficient and effective filing process and promotion of tax collection amongst taxpayers. Originality/Value: Therefore, this study intended to fill this gap by analyzing the effectiveness of the tax e-filling system on improving tax collection in Ilala tax region, Tanzania by focusing on small taxpayers.

Keywords: E-filling; Filling system; Revenue; Tax collection; Taxpayers (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-25998-2_60

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DOI: 10.1007/978-3-031-25998-2_60

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