Factors Affecting Taxpayers’ Voluntary Compliance with Tax Laws: A Literature Review on Tanzania

Pilly Hassani Jarufu

doi:10.18535/ijsrm/v13i04.em10

Abstract

Tax compliance is a vital component of revenue generation for governments, particularly in developing nations such as Tanzania, where it significantly impacts public service funding and economic development. This literature review synthesizes existing research to examine the factors influencing taxpayers' voluntary compliance with tax laws in Tanzania, aiming to illuminate the motivations and challenges faced by taxpayers. Key themes identified in the review include tax knowledge and education, perceived fairness of the tax system, administrative efficiency, the influence of corruption, and the role of technology in enhancing compliance. The findings underscore the urgent need for targeted strategies to improve compliance, such as enhancing tax education programs, simplifying payment processes, and promoting transparency within tax administration. Ultimately, this review aims to provide actionable insights for policymakers and tax authorities, facilitating efforts to strengthen voluntary tax compliance and thus bolster Tanzania’s revenue system and socioeconomic development.

Keywords

Tax ComplianceVoluntary ComplianceTanzaniaCorruptionTax Education

References

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Asher, S. (1999). Economic policy reform in Tanzania: Implications for taxation. Journal of African Economies, 8(1), 1-20.Google Scholar ↗
Böhlmark, A., Hulten, C. R., & Korkeamäki, T. (2017). How social norms affect tax compliance: Evidence from a field experiment. Public Finance Review, 45(4), 551-578.Google Scholar ↗
Freire-Serén, M. J. (2013). Tax compliance and tax system efficiency in developing countries. International Journal of Economics and Finance, 5(12), 15-26.Google Scholar ↗
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Mkenda, B. (2019). The tax compliance dilemma in Tanzania: An analysis of tax laws and public perception. Dar es Salaam University Law Journal, 8(2), 205-220.Google Scholar ↗
Mtemanga, D. (2023). The impact of tax compliance education on small and medium enterprises in Tanzania. Tanzanian Journal of Business Studies, 11(1), 29-47.Google Scholar ↗
Nguvumali, D. (2025). Corruption in tax administration and its implications for tax compliance in Tanzania. African Journal of Public Affairs, 9(4), 115-131.Google Scholar ↗
Nkhata, M. (2019). Administrative efficiency and tax compliance in Tanzania: The role of bureaucracy. Journal of Public Administration, 12(3), 163-180.Google Scholar ↗
Rweyendela, K. (2017). The effect of corruption on tax compliance: A case study of Tanzania. Tanzania Economic Review, 10(2), 37-54.Google Scholar ↗
Saadi, A., Mwende, J., & Msuya, J. (2023). Understanding the link between corruption and tax compliance in Tanzania. Journal of African Studies, 15(1), 88-102.Google Scholar ↗
Sanga, F. (2021). Public perception of tax fairness in Tanzania: A qualitative analysis. Tanzania Sociological Review, 26(2), 78-95.Google Scholar ↗
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Tanzania Revenue Authority (TRA). (2017). EFD and tax education initiative. Retrieved from https://www.tra.go.tzGoogle Scholar ↗
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Iddi, A., Mzuri, J., & Kihamba, J. (2022). Barriers to accessing tax compliance technologies in rural Tanzania. Journal of Rural Studies, 43(1), 5-22.Google Scholar ↗

[refR-1] Adamu, A., Mhando, M. J., & Mhando, K. (2023). Administrative burdens and tax compliance in Tanzania: Insights and implications. Journal of Tax Administration, 9(2), 45-68.Google Scholar ↗

[refR-2] Asher, S. (1999). Economic policy reform in Tanzania: Implications for taxation. Journal of African Economies, 8(1), 1-20.Google Scholar ↗

[refR-3] Böhlmark, A., Hulten, C. R., & Korkeamäki, T. (2017). How social norms affect tax compliance: Evidence from a field experiment. Public Finance Review, 45(4), 551-578.Google Scholar ↗

[refR-4] Freire-Serén, M. J. (2013). Tax compliance and tax system efficiency in developing countries. International Journal of Economics and Finance, 5(12), 15-26.Google Scholar ↗

[refR-5] Kihamba, J. (2023). Social norms and tax compliance in Tanzania: An ethnographic study. Tanzania Journal of Social Sciences, 10(1), 102-118.Google Scholar ↗

[refR-6] Lumumba, C., Mwita, A., & Mbunda, R. (2021). Effective tax education initiatives: A case study of Tanzania. East African Journal of Business Management, 4(3), 145-162.Google Scholar ↗

[refR-7] Mhando, M. J., & Mhando, K. (2020). Tax literacy among taxpayers in Tanzania: Challenges and opportunities. African Journal of Accounting and Finance, 5(2), 187-204.Google Scholar ↗

[refR-8] Mkenda, B. (2019). The tax compliance dilemma in Tanzania: An analysis of tax laws and public perception. Dar es Salaam University Law Journal, 8(2), 205-220.Google Scholar ↗

[refR-9] Mtemanga, D. (2023). The impact of tax compliance education on small and medium enterprises in Tanzania. Tanzanian Journal of Business Studies, 11(1), 29-47.Google Scholar ↗

[refR-10] Nguvumali, D. (2025). Corruption in tax administration and its implications for tax compliance in Tanzania. African Journal of Public Affairs, 9(4), 115-131.Google Scholar ↗

[refR-11] Nkhata, M. (2019). Administrative efficiency and tax compliance in Tanzania: The role of bureaucracy. Journal of Public Administration, 12(3), 163-180.Google Scholar ↗

[refR-12] Rweyendela, K. (2017). The effect of corruption on tax compliance: A case study of Tanzania. Tanzania Economic Review, 10(2), 37-54.Google Scholar ↗

[refR-13] Saadi, A., Mwende, J., & Msuya, J. (2023). Understanding the link between corruption and tax compliance in Tanzania. Journal of African Studies, 15(1), 88-102.Google Scholar ↗

[refR-14] Sanga, F. (2021). Public perception of tax fairness in Tanzania: A qualitative analysis. Tanzania Sociological Review, 26(2), 78-95.Google Scholar ↗

[refR-15] Tanzania Revenue Authority (TRA). (2012). Annual tax collection report. Dar es Salaam, Tanzania.Google Scholar ↗

[refR-16] Tanzania Revenue Authority (TRA). (2015). Revenue collection report. Dar es Salaam, Tanzania.Google Scholar ↗

[refR-17] Tanzania Revenue Authority (TRA). (2017). EFD and tax education initiative. Retrieved from https://www.tra.go.tzGoogle Scholar ↗

[refR-18] Maps of World Finance. (2011). Tax revenue performance in Tanzania. Retrieved from https://www.mapsofworldfinance.com/tanzania-tax-revenueGoogle Scholar ↗

[refR-19] Iddi, A., Mzuri, J., & Kihamba, J. (2022). Barriers to accessing tax compliance technologies in rural Tanzania. Journal of Rural Studies, 43(1), 5-22.Google Scholar ↗