Abstract:
The study aims at investigating revenue collection strategies in Local Government Authorities, assessing revenue collection strategies used by Ilala Municipal Council and lastly investigating the reason why some strategies of collecting revenue fail by using Ilala Municipal Council as a case study.
Based on the objective and research questions, the research instruments such as questionnaires and review of various documents were used to get information that addresses the issues under study. Also, the study involved a sample of 100 respondents, where the sampling techniques used was non probability sampling. The purposive and convenient sampling was used to get respondents from the study population. The data collection methods include questionnaires and review of various documents.
The collected data were coded, analysed and presented in chapter four; then were later discussed in chapter five of this report. Excel was used to analyse these data from the field. Therefore, the study found that, there are two revenue collection strategies in Ilala Municipal Council, that is, revenue collecting agents and council revenue collectors. 54% of respondents favoured use of revenue agents, while 44% favoured use of revenue collecting agents (outsourcing) and 2% were not certain which strategy should be used by Ilala Municipal Council. It was also revealed that, both strategies are doing well although they have some challenges which include corruption, tax evasion, tax exemption, and poor feasibility of revenue sources before outsourcing them to agents.
Finally, the study concludes that, the councils should continue using both revenue collecting strategies, however, the council should make sure that, all weaknesses are dealt out to make the sources deliver more revenue to the council.
