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FACTORS AFFECTING Lgas in IMPLEMENTING STRATEGIES to ENHANCE REVENUES from SERVICE CHARGES and FEES

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FACTORS AFFECTING Lgas in IMPLEMENTING STRATEGIES to ENHANCE REVENUES from SERVICE CHARGES and FEES FACTORS AFFECTING LGAs IN IMPLEMENTING STRATEGIES TO ENHANCE REVENUES FROM SERVICE CHARGES AND FEES: A CASE OF ILALA MUNICIPAL COUNCIL By Amina Nassor A Dissertation Submitted in Fulfilment of the Requirement for Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University 2019 CERTIFICATION We, the undersigned, certify that we have read and hereby recommend for acceptance by the Mzumbe University, a dissertation entitled “Factors Affecting LGAs in Implementing Strategies to Enhance Revenues from Service charges and Fees: A Case of Ilala Municipal Council” in fulfilment of the requirements for award of degree of Master of Business Administration in Corporate Management of Mzumbe University. Signature_________________________ Major Supervisor Date_____________________________ Signature Internal Examiner Date______________________________ Signature_________________________ External Examiner Date_____________________________ Accepted for the Board of MUDCC PRINCIPLE, DAR ES SALAAM CAMPUS COLLEGE BOARD i DECLARATION AND COPYRIGHT I, Amina Nassor, declare that this dissertation is my own original work and that it has not been presented and will not be presented to any other university for a similar or any other degree award. Signature ___________________________ Date________________________________ 2019 © This dissertation is a copyright material protected under the Berne Convention, the Copyright Act 1999 and other international and national enactments, in that behalf, on intellectual property. It may not be reproduced by any means in full or in part, except for short extracts in fair dealings, for research or private study, critical scholarly review or discourse with an acknowledgement, without the written permission of Mzumbe University, on behalf of the author. ii acknowldgement I wish to express my gratitude to all who participated in one or another to make the accomplishment of this study. Due to the length of the list of individuals who participated in this study, I would like to mention only the few of them on behalf of others. To begin with I would like to express my gratitude to my supervisor Dr. Stella Malangalila Kinemo for her support and guidance which made the accomplishment of this study. Furthermore, I will not be fair if I will not mention my family for its support most especially my mother who has been the most influential person to me during my study. Above of all things I express gratitude to Allah for his immeasurable grace upon me as he said in Quran “you who have believed, seek help through patience and prayer. Indeed, Allah is with the patient” Surah Al-Baqarah [2:153]. iii DEDICATION I dedicate this work to my lovely family and fiancée for their unconditional love, encouragement and support during the course of this study. iv LIST OF ABBREVIATIONS AND ACRONYMS LGA - Local Government Authority REPOA - Research on Poverty Alleviation TRA - Tanzania Revenue Authorities TASAF - Tanzania Social Action Fund URT - United Republic of Tanzania v ABSTRACT Over the past decade most of the local government responsibilities were financed by the central governments but after the decentralization reforms which started being implemented in the year 2000. LGAs started to have responsibilities which were to be implemented through their own resources. Since the LGAs have been facing a number of challenges especially in implementing strategies to enhance revenues from service charges and fees, therefore the primary objective of this study was to show the challenges facing the LGAs in implementing strategies to enhance revenues from service charges and fees. The study was conducted in Dar es Salaam applying the municipal council of Ilala as the study case involving the sample size of 149 respondents from different departments of the Ilala municipality. Both the qualitative and quantitative research approaches were applied in this study which provided the researcher with the room of using questionnaire, interview and documentation as the data collection tools of the study. The findings from the study show that the municipal council of Ilala have been facing the organisational, institution, community, economic as well as well as the political challenges which in one way or the other have been hindering the process of revenue collection from the field. Since the study found that there is a gap existing between the LGAs' budgets and revenue collections, this study recommends that there is a need for more efforts to clear or minimize the gap in the LGAs' budgets and revenue collections. Also, this study recommends that there is a need of more or frequency training and workshops to train staff responsible for revenue collections such as on the significance of accountability and transparency in revenue collections. Also, the government should set enough budgets that will allow the responsible authority to improve the working environments as well as other facilities of the municipal council which have been affecting the process of revenue collection from the service charges and fees. vi TABLE OF CONTENTS CERTIFICATION ........................................................................................................................... i DECLARATION AND COPYRIGHT........................................................................................... ii ACKNOWLDGEMENT................................................................................................................ iii DEDICATION ............................................................................................................................... iv LIST OF ABBREVIATIONS AND ACRONYMS ....................................................................... v TABLE OF CONTENTS .............................................................................................................. vii LIST OF TABLES ........................................................................................................................ xv LIST OF FIGURES .................................................................................................................... xvii CHAPTER ONE ............................................................................................................................. 1 INTRODUCTION OF THE STUDY ............................................................................................. 1 1.1 Introduction of the Study ...................................................................................................... 1 1.2 Background of the Study ...................................................................................................... 1 1.3 Statement of the problem ...................................................................................................... 2 1.4 The General objective of the study ....................................................................................... 4 1.4.1 Specific Objectives ........................................................................................................ 4 1.5 Research Questions ............................................................................................................... 4 1.6 Significance of the study ....................................................................................................... 5 vii 1.7 Scope of the study ................................................................................................................. 5 1.8 Limitations of the study ........................................................................................................ 6 1.9 Organisation of the dissertation ............................................................................................ 7 CHAPTER TWO ............................................................................................................................ 9 LITERATURE REVIEW .............................................................................................................. 9 2.1 Introduction of the study ....................................................................................................... 9 2.2 Definition of key terms and concepts ................................................................................... 9 2.2.1 Local Government Authorities (LGAs) ............................................................................. 9 2.2.2 Revenue Collection Strategies ....................................................................................... 9 2.2.3 Challenges facing the process of revenue collection ................................................... 10 2.2.4 Political factors affecting revenue collection in LGAs ................................................ 11 2.2.5 Institutional factors affecting revenue collection ......................................................... 12 2.2.6 Economical Factors affecting the revenue collection .................................................. 12 2.2.7 Organisational factors affecting the revenue collection ............................................... 13 2.3 Functions of Local Government Authorities ...................................................................... 14 2.3.1 Permitted Local Government Taxes and Sources of Revenues ................................... 14 2.3.2 Local Government Authorities Revenue Qualities ...................................................... 15 2.3.3 Local Government Authorities Revenue Enhancement ................................................... 15 viii
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