Abstract:
Government expenditures rely on collected revenues. However, the low levels of collected
revenues have been witnessed in developing countries including Tanzania. Among other
drivers of poor revenue collection, tax collectors’ competence has been an ideal towards
increased collection of government revenues. This study aims to assess the determinants of
revenue collectors’ competence in Tanzania. The study used 247 revenue collectors from Siha
and Same districts in Tanzania, by applying the cross-sectional study design. Data was
collected using questionnaires, entered into a Statistical Package for the Social Sciences, for
analysis. Both descriptive and inferential analysis were conducted. Descriptively, data were
summarized in a frequency distribution table using frequency, percentages, means and standard
deviations. Inferential analysis employed the structural equation modelling, where both the
measurement and structural models were determined. Assumptions of Structural Equation
Modelling were taken into account following particular model fit indices. Out of the 247
participants, majority were 58.7% males, 82.2% aged between 25 – 54 years, 53.4% with
certificate and diploma and 59.5% living in Same district. Based on the determinants of revenue
collectors’ competence, it was revealed that for each unit increase in Tax Laws, Personal
Competence increased by 0.36 (p < 0.001). Similarly, for each unit increase in Technological
Support Services and Tax Enforcement, the Personal Competence increased significantly by
0.17 and 0.21 respectively at a 1% level. Furthermore, for each unit increase in Tax
Compliance, the Personal Competence increased significantly by 0.31 at a 5% level. The study
revealed that Tax Law had a higher effect on Personal Competence while Technological
Support Services had a lower effect as compared to other factors. These findings imply that
more investments and training on advancing available technology is needed so as the effect of
Technological Support Services to outweigh other factors. Therefore, government and
stakeholders should make sure that revenue collectors are well equipped with available
technologies through training so as to enhance proper revenue collection to carter for
