Abstract: The general purpose of the study was to investigate the effect of electronic revenue system on local Government revenue collection in Arusha city council in Tanzania. The research was based on the assumption that, there was no significant relationship between electronic revenue system and local government revenue collection in Tanzania. Specifically, the study sought to assessment the effects of point of sale devices, effects of mobile payment system and the effects of max malipo payment system on local Government revenue collection in Tanzania. The study used explanatory research design to explore the relationship between variables. The target population was Arusha city council’s officers and stakeholders specifically city treasurer(s), economists, trade officers, revenue collection agents and traders whereby sample size of 70 respondents were purposively selected from three department of Arusha city council agents and traders to represent employees of local government authorities in Tanzania . Reliability of research instruments was analyzed using SPSS and scaled through Cronbach alpha (α) coefficient while validity of questionnaires and interview guide were tested to validate, face validity and content validity. However pilot test was done by distributing nine (9) questionnaire equals to 13% of the total sample size of respondents to validate the appropriateness of research instrument. Data was screened and organized and later on, Statistical Package for Social Science (SPSS) and Microsoft excel were used to analyze data of which multiple regressions was used to indicate correlation of variables whereby inferential statistics: mean, standard deviation, frequencies and percentages were used to describe findings. Data were presented through graphs, charts, and tables to quantify research findings. Therefore the study found that the adoption of electronic revenue system such as Point of Sale devices and mobile payment system, substantially increase revenue collection beyond the target, despite of elimination of max malipo payment system due to system fragility. Furthermore the study concluded that there is significant relationship between electronic revenue systems and revenue collection in Tanzania. The study recommend that Arusha City Council should ensure availability of POS devices to all revenue sources, impose technology for revenue control mechanism such as camera and electronic card as used in toll services. There should be simplified bureaucracy of issuing control number to motivate service users. However, other researchers could further investigate on the contribution and challenges facing each electronic revenue system on revenue collection in local Government authorities.
Keywords: Electronic Revenue System, Point of sale devices, Mobile payment, Max Malipo, Local Government authorities, Local government revenue.
Title: EFFECT OF ELECTRONIC REVENUE SYSTEM ON LOCAL GOVERNMENT REVENUE COLLECTION IN TANZANIA: A CASE OF ARUSHA CITY COUNCIL
Author: Salum Ibrahim Kanyungu, Dr. David Aunga
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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