Trust in tax administration: Why it matters for tax compliance
Trust is a foundational component of any tax system, particularly in environments where enforcement capacity is weak. In Tanzania, businesspeople exhibit low levels of trust in tax authorities, undermining voluntary compliance and weakening the legitimacy of the tax system. However, trust is not static; it can be built – and rebuilt – through better services, […]
To trust or not to trust? Taxation from the perspective of businesspeople in Tanzania
Given the limited capacity for effective tax enforcement and monitoring in developing countries, taxpayers’ trust in the tax system is essential for fostering voluntary tax compliance. Since businesses account for a substantial portion of tax revenues, this paper examines the factors that predict trust in the tax authority, drawing on a large-scale survey of businesspeople’s […]
Taxation and Business Development in Zanzibar: Insights from a Business Survey
The private sector is a critical driver of economic growth in Tanzania. The government has expressed a strong commitment to fostering a vibrant business environment while ensuring sufficient public resources for economic development. However, balancing taxation and business growth remains a challenge. This report presents findings from a survey of businesspeople in Zanzibar, examining their […]