Browsing by Author "Adam, Kessi"

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    VAT compliance in manufacturing industries in Dar-ES-Salaam Tanzania
    (Mzumbe University, 2013) Adam, Kessi
    The study was on the VAT Compliance in Manufacturing Industries in Dar-es-salaam Tanzania. Specifically, the study investigated factors affecting VAT compliance in Manufacturing Industries in Dar-es-salaam city in Tanzania. The study involved 30 respondents from 3 manufacturing industries located at Kinondoni municipality in Dar-es-salaam region, 10 Tax expertise (tax consultant) from Kinondoni municipality and 5 TRA staffs selected from VAT department at TRA Kinondoni tax region. Data collection methods were questionnaires, personal interview and documentary review. And data collected were analyzed using Statistical Package for Social Science (SPSS) as well as advanced Microsoft excel. The results shows that almost 28 (93.3%) respondents from manufacturing industries were in opinion that current VAT rate (18%) is very high which tend to affect compliance of VAT in manufacturing industries in Tanzania by abusing VAT and by operating informal. Also about 28 (93.3%) respondents agreed that multiplicity of tax laws in Tanzania is the main cause of non-compliance, this is simply because having more than one tax law applicable to single transaction brings confusion ininterpretation thus brings complication in complying with these laws. And results shows that Out of 10 respondents (tax expertise) 8 (93.3%) respondents were in opinion that VAT exemption cause non-compliance of tax to manufacturing industries, this is because VAT exemptions creates a room for taxpayers to evade paying tax by intentional misclassification of goods, ineffective monitoring and control of exemption by TRA, also unnecessarily exemptions granted to manufacturing industries. Respondents come up with greater conclusion that current VAT rate is high therefore should be adjusted from 18% to 15%, multiplicity of tax laws complicate compliance, and VAT exemptions open the doors to tax evader. Therefore compliance of manufacturing industries in Tanzania is mainly affected by those factors. It was recommended that, tax laws and VAT rate should somehow be reduced so as manufacturing industries and other taxpayers adhere and comply hence render proper amount of tax required conveniently and promptly. Also There should be strongadministration by TRA that control and monitor VAT exemptions and hence enhancetax compliance by manufacturing industries.