Performance of Revenue Collection in West ‘A' Municipal Council of Zanzibar, Tanzania

Abstract

The study focused on assessing the performance of revenue collections in West 'A' Municipal Council of Zanzibar. The specific objectives were to analyze revenue performance by source in west 'A' municipal Council of Zanzibar and determine the factors affecting revenue collection in West 'A' Municipal Council. The study used a descriptive research design. A sample of 65 respondents and information were obtained using questionnaires and interviews. The Data from interviews were analysed using content analysis, while the data from the questionnaires were analysed using frequency percentage and mean and standard deviation. The study concluded that West 'A' has two major revenue sources leading to effective performance. These were business license fees and service charge fees. Other sources of revenue, such as advertisements, penalties, fines, parking, and marketing fees, had a less effective performance. This conclusion meant that most of West 'A' Municipal council's revenue came from business license fees and service charges. Also, the study concluded that the factors: Lack of enough tax education, administrative inefficiencies, lack of general sensitization, tax evasion, political interference and corruption were the main hindrances to effective revenue collection and highly affected the revenue collection at West 'A'  Municipal Council of Zanzibar.