Local Government Revenue Collection in Tanzania under the Outsourced Model: A Case of Kilosa District Council

Abstract

This study assessed local government revenue collection in Tanzania under an outsourced model, using the Kilosa District Council as a case study. A mixed-methods approach was adopted, combining quantitative and qualitative data. Quantitative data were collected through a survey method assisted by a questionnaire, and qualitative data were collected through an interview method with the aid of an interview guide. Primary data were obtained from revenue collection supervisors, council officials, and taxpayers, while secondary data were drawn from official documents. Quantitative data were analysed using descriptive statistics, and qualitative data were analysed through thematic analysis. The results indicated that the adequacy of human resources affected revenue collection efficacy. Similarly, the application of modern tools enhances both the efficiency and accuracy of revenue collection, while low operational costs are also associated with improved collection efficacy.  Likewise, findings identified challenges, including taxpayers’ negative perceptions, resistance to paying taxes, and inadequate assessment of the resource base. The study concludes that, compared to non-outsourced models, outsourcing revenue collection in Kilosa District Council offers considerable potential for enhancing revenue generation. However, addressing operational challenges and establishing robust support mechanisms are essential to sustaining its effectiveness. The study recommends strengthening capacity-building initiatives, improving technological infrastructure, and fostering partnerships between local government and contracted agents. Thus, this study provides insights for policymakers and other local authorities in Tanzania and similar contexts, considering outsourcing as a revenue collection strategy.