Determinants of Effective Revenue Collection   in Local Government of Tanzania: The Case of Dodoma City Council, Dodoma Region

Revenue collection remains a critical and debated issue among scholars, economists, accountants, and policymakers due to its role in enabling governments to acquire debt-free assets for economic development. This study aimed to evaluate the factors influencing revenue collection efficiency in Tanzania, focusing on Dodoma City Council. A cross-sectional research design was adopted, utilizing questionnaires, in-depth interviews, and focus group discussions to gather data from 80 respondents. Data were analyzed using IBM-SPSS 26.0, while content analysis was employed for qualitative data from interviews and focus groups. The findings revealed that factors such as technology, education, administrative capacity, and commitment are crucial to enhancing revenue collection efficiency. The study also highlighted the benefits of improved revenue collection, including increased revenue generation and enhanced service delivery. However, respondents reported inefficiencies in Dodoma’s revenue collection systems, attributed to challenges such as inadequate manpower, low tax compliance, and technological constraints. Additionally, while revenue collection agents were found to be more effective than local councils, Dodoma City Council faces persistent issues like poor data management, political interference, and an outdated legal framework. The study recommends that the government, particularly the Ministries of Local Government and Finance, provide targeted training and educational programs on tax compliance and implement swift strategies to address the challenges hindering revenue collection efficiency in Tanzania.