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Author(s): Heriel Emanuel Nguvava (Ph.D.), Vaishali Jeetendra Sangar.

Volume/Issue: Volume 7 , Issue 1 (2024)

Abstract:

This study was conducted to examine the influence of tax service quality on presumptive taxpayers’ compliance in Tanzania: a case of Ilala Tax Region. The study was guided by three specific objectives as indicated by independent variables namely Tax Service Reliability, Tax Service Responsiveness and Tax Service Tangibility. The study adopted a positivist philosophy, employed a deductive approach, and utilized survey strategy. The study was conducted in Ilala Municipal with a sample of 384 respondents. Probability sampling procedure was applied through simple random sampling technique. The study used both primary and secondary data. Primary data was collected through questionnaires. Peer reviewed journal articles relevant for the subject matter, national tax and trade statistics reports from Tanzania Revenue Authority (TRA) and National Bureau of Statistics (NBS) were reviewed for secondary data. Data was analyzed using the OLS regression model. This study has found that Tax Service Reliability and responsiveness has no significant influence on presumptive tax payer’s compliance in Ilala Tax Region. Also the study revealed Tax Service Tangibility to have a significant positive influence on presumptive taxpayers’ compliance in the Ilala tax region. From the results, this study recommends Tanzania Revenue Authority (TRA) to focus on enhancing the perceived reliability of their tax services, including measures to ensure consistent interpretation and application of tax regulations, improving the accuracy of tax assessments, expediting the issuance of tax-related documents, enhancing the transparency of tax procedures and policies, and maintaining reliable online tax filing systems. Additionally, they should prioritize improving responsiveness to taxpayers’ needs by enhancing the promptness of addressing inquiries and concerns, making tax authority representatives more accessible through various communication channels, offering comprehensive assistance and guidance, and ensuring clarity in tax-related communication materials to enhance taxpayers’ understanding and compliance.

Keywords:

Tax service quality, Presumptive taxpayer, Compliance.

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