Compliance with Tax at Household Level: The Case of Development Levy in Tanzania
Deogratius P. Mushi* (Research Fellow, Economic Research Bureau, University of Dares Salaam)
Download Article | Published On 01/03/2003


This paper is about compliance with tax at local government level in Tanzania. A simple generic model of tax compliance is set out to determine the factors that might influence the behavior of taxpayers. The model is further specified to look on compliance with development levy in Tanzania. For simplicity and data constraints problem, legit model techniques are applied to sort out the major covariates of tax compliance. Empirical results of the model have shown that individual characteristics, tax effort and terms of trade with local government authorities are all important in explaining compliance with development levy in Tanzania. However, rural-urban location constitutes the strongest effect in terms of who pay and who does not.

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