Business Studies (DCC)

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Browsing Business Studies (DCC) by Author "Changwala, Christina W."

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    Low revenue collection in local government authorities: The case of Ilala municipal council.
    (Mzumbe University, 2014) Changwala, Christina W.
    This study aim to empirically explore the reason for low revenue collection in IMC. For various years IMC’s final accounts report a huge amount of employees, suppliers and contractors debts, this signify that the fund obtain during financial year fail to cover the operation cost of services received. For instance in Financial report for the year ending 2012 the total debt reported were tsh 8,028,108,124.52 while in 2013 the reported debt were 10,215,239,161.52. (IMC Financial Report 2012 & 2013). Therefore the study attempt to examine why own revenue fail to finance the IMC operations hence ending in huge debts. The primary data were collected through questionnaires, filled by IMC members .Furthermore interviews were conducted with the revenue section and some business owners located in IMC. It can be seen from table 4.2 that the own revenue of IMC contribute only 23.3% of the total revenue. This finding is almost consistent with 2013 MTEF where own revenue reported as 27.7% of the total revenue budget, this affects the efficiency. There is a negative argument on outsourcing sources of revenues as the agent benefiting much on the expense of the council, also difficulties the revenue collectors face due to political interference. Further the organizational ineffectiveness on revenue administration which create fund leakage and difficulties on punishing non compliance. The low revenue collections truly affect the IMC operations, as it is known to have a lot of Buildings, hotels, billboard and large business owners, the efforts should be done to maximize the revenue database, improve the administration of the current sources, plus identification of new and potential taxpayer while applying the laws, rules and regulations. Finally all revenue should be collected and administered by IMC workers.