Impact of Individual Income on Tax Revenue Mobilisation in Tanzania: An Analysis of Annual Data from 1990 to 2020
Keywords:
Individual Income, Revenue mobilisation, TanzaniaAbstract
Mobilisation of revenue is critical to continuing financial performance in all developing and developed nations. The objective of this research was to investigate how individual income influence tax revenue mobilisation. The research used a quantitative research methodology and a time series data research design, which comprised a number of time series data procedures such as cointegration and normality testing. Tanzania was represented via secondary data from two areas, totaling 30 observations (From 1990-2020). The Vector Correction Model (VCM) was developed to look at long-term connections between variables. The data came from credible sources Bank of Tanzania (BOT), Tanzania Revenue Authority (TRA), International Monetary Fund (IMF), National Beuro of Statistics (NBS) and World Bank (WB). The study’s findings revealed a significant statistically association between individual income and tax revenue mobilisation in developing countries like Tanzania. According to the research, designing and implementing a more realistic tax framework that allows for monetary ties will improve revenue mobilisation across nations. The government should provide an extra favourable situation for overseas trade thus that additional of them may be assumed, hence growing Gross Domestic Product. Alterations in tax charges must likewise be controlled in purpose to rise the TZS pricing, which may have an influence on revenue mobilisation.
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