Tax Morale Level among Individual Income Taxpayers in Tanzania

Abstract

Level of tax morale refers to the extent to which taxpayers are voluntarily willing to register into the tax system, make correct declaration of their income and pay taxes within prescribed time. Thorough understanding of the level of tax morale among taxpayers enables tax authorities to design and institute appropriate remedy measures to enhance compliance behavior. Thus, this study sought to establish the level of tax morale among individual income taxpayers in Tanzania.  The study employed the mixed approach, where quantitative data was collected from 420 income taxpayers in selected regions.  Qualitative data came from interview with selected Tanzania Revenue Authority staff members.  Data analysis involved the descriptive statistics and the thematic approach. The findings show that significant portion of individuals were ready to register voluntarily with the tax system, make correct declaration of their income and pay taxes within due dates.  However, sizeable portion of individuals were not ready to voluntary register with the tax system, make correct declaration of their income and pay taxes within due dates. Therefore, there is a need for enhancing tax compliance behavior using various procedures.