Compliance with Tax at Household Level: The case of Development Levy in Tanzania

Abstract

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 further specified to look on compliance with development levy in Tanzania. For simplicity and data constraints problem; logit 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 governmental ities are all important in explaining compliance with development levy in Tanzania. However, rural-urban location constitutes the strongest effect in terms of who pays and who does not.


(Af. J. of Finance and Management: 2003 11(2): 48-58)