Regulatory Quality and Tax Revenue Performance: Evidence from Dar es Salaam, Tanzania

Modest Paul Assenga

doi:10.2478/mosr-2025-0009

.blurhash-client-img { display: none !important; }

Regulatory Quality and Tax Revenue Performance: Evidence from Dar es Salaam, Tanzania

Management of Organizations: Systematic Research

Volume 94 (2025): Issue 1 (December 2025)

By: Modest Paul Assenga

Open Access

|Apr 2026

Abstract

This study examines the effect of regulatory quality on Tanzania’s tax revenue performance. It analyses the effectiveness of tax regulations in influencing government tax revenue collection. The study identifies the challenges facing tax regulations in the country and recommends some measures to improve government revenue collection. The main findings show that regulatory quality has a significantly positive influence on tax revenue performance in Tanzania. The study stresses the need to strengthen the regulatory system to achieve effective, wellenforced tax regulations and to promote voluntary tax compliance in order to increase tax revenue performance.

References

Acemoglu, D., Johnson, S., Robinson, J. A. (2001). The COLONIAL Origins of Comparative Development: An Empirical Investigation // The American Economic Review. Vol. 91, No. 5, pp. 1369–1401. doi: 10.1257/aer.91.5.1369
Search in Google Scholar Back to article
Ayana, I. D. (2024). On the Government Revenue and Economic Growth of SubSaharan African Countries // Heliyon. Vol. 10, No. 3, e09350. Internet access: https://linkinghub.elsevier.com/retrieve/pii/S2405844024003505
Search in Google Scholar Back to article
Ali, M. (2018). Regulatory Burdens in Tax Administration and Firms’ Compliance Costs in Africa. – Chr. Michelsen Institute. Internet access: https://www.cmi.no/publications/file/6717regulatoryburdensintaxadministrationandfirms.pdf
Search in Google Scholar Back to article
Allingham, M., Sandmo, A. (1972). Income Tax Evasion: A Theoretical Analysis // Journal of Public Economics. Vol. 1, No. 3–4, pp. 323–338. doi: 10.1016/00472727(72)900102
Search in Google Scholar Back to article
Aluko, O. A., Ibrahim, M. (2020). Institutions and the Financial Development–Economic Growth Nexus in SubSaharan Africa.” Economic Notes Vol. 49 No. 3: e12163. doi:10.1111/ecno.12163
Search in Google Scholar Back to article
Asante, G. N., Takyi, P. O., Mensah, G. (2023). The Impact of Financial Development on Economic Growth in SubSaharan Africa. Does Institutional Quality Matter? // Development Studies Research. Vol. 10, No. 1. doi: 10.1080/21665095.2022.2156904
Search in Google Scholar Back to article
Besley, T., Persson, T. (2013). Taxation and Development / In Handbook of Economic Growth, eds. P. Aghion and S. Durlauf. – Vol. 2, pp. 517–573. doi: 10.1016/b9780444537591.000029
Search in Google Scholar Back to article
Bird, R. M., Zolt, E. M. (2008). Tax Policy in Emerging Countries. Environment and Planning // Government and Policy. Vol. 26, No. 1, pp. 73–86. doi: 10.1068/cav3
Search in Google Scholar Back to article
Bryman, A., Bell, E. (2015). Business Research Method (4th ed.). – Oxford University Press, Oxford.
Search in Google Scholar Back to article
Creswell, J. W., Plano, C. V. (2011). Designing and Conducting Mixed Research Methods (2nd ed.). – Sage, Los Angeles.
Search in Google Scholar Back to article
Djayasinga, M., Prasetyo, T. J. (2019). The Effect of Government Effectiveness, Rule of Law and Control of Corruption toward Tax Obedience // Revista De Ciencias Sociales y Humanidades. Vol. 4, No. 16, pp. 136–143. Internet access: https://www.redalyc.org/journal/6437/643770320014/html/
Search in Google Scholar Back to article
Epaphra, M., Massawe, J. (2017). Corruption, Governance and Tax Revenues in Africa // Business and Economic Horizons. Vol. 13, No. 4. doi: 10.15208/beh 2017.31
Search in Google Scholar Back to article
FernándezRodríguez, E., SánchezVidal, M. E., MoyaSalazar, M. (2023). Institutional Determinants of the Effective Tax Rate in G7 and BRIC Countries // Economic Analysis and Policy. Vol. 47, No. 2. doi: 10.1016/j. ecosys.2023.101079
Search in Google Scholar Back to article
Field, A. (2014). Discover Statistics Using IBM SPSS Statistics (4th ed.). – Sage, London.
Search in Google Scholar Back to article
Fitri, S. A. (2023). Analysis of the Effect of Tax Compliance, Tax Avoidance, and Financial Reporting Quality on Corporate Financial Performance // International Journal of Economics and Finance. Vol. 15, No. 2, pp. 45–55. Internet access: https://pdfs.semanticscholar.org/c2cb/95f40da0c706617bd8ba6092ff2a3cb92f2f.pdf
Search in Google Scholar Back to article
Fjeldstad, O. H., Tungodden, B., Semboja, J. (2008). Corruption, Tax Evasion, and Savings in Tanzania // Forum for Development Studies. Vol. 35, No. 2, pp. 201–228. doi: 10.1080/08039410.2008.9666317
Search in Google Scholar Back to article
Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E. (2007). Multivariate Data Analysis (7th ed.). – Prentice Hall, Englewood Cliffs, NJ.
Search in Google Scholar Back to article
Hassan, M. S., Mahmood, H., Tahir, M. N., Yousef Alkhateeb, T. T., Wajid, A. (2021). Governance: a Source to Increase Tax Revenue in Pakistan // Complexity. Pp. 1–11. doi: 10.1155/2021/6663536
Search in Google Scholar Back to article
Kahunde, R., Mukisa, I., Teera, J. (2019). The Effect of the Quality of Governance on Tax Revenue in East Africa // Tanzanian Economic Review. Vol. 9, No. 1, pp. 15–34. Internet access: https://journals.udsm.ac.tz/index.php/ter/article/view/3067/3020
Search in Google Scholar Back to article
Kaufmann, D., Kraay, A., Mastruzzi, M. (2011). The Worldwide Governance Indicators: Methodology and Analytical Issues // The Hague Journal on the Rule of Law. Vol. 3, No. 2, pp. 220–246. doi: 10.1002/pad.1693
Search in Google Scholar Back to article
Kebede, J., Chuko, G. (2025). Regulatory Quality, Political Stability, and Tax Revenue Performance: Empirical Evidence from SubSaharan Africa // Journal of Tax Reform. Vol. 11, No. 4, pp. 757–773. doi: 10.15826/jtr.2025.11.4.179
Search in Google Scholar Back to article
Kebede, T. N. (2025). Regulatory Quality, Political Stability, and Tax Revenue Performance: Empirical Evidence from SubSaharan Africa // Journal of Tax Reform. No. Vol. 11, No. 4, pp. 757–773. doi: 10.15827/jtr.2025.11.4.226
Search in Google Scholar Back to article
Kirchler, E. (2007). The Economic Psychology of Tax Behaviour. – Cambridge University Press.
Search in Google Scholar Back to article
Kirchler, E., Hoelzl, E., Wahl, I. (2008). Enforced Versus Voluntary Tax Compliance: The Slippery Slope Framework // Journal of Economic Psychology. Vol. 29, No. 2, pp. 210–225. doi: 10.1016/j.joep.2007.05.004
Search in Google Scholar Back to article
Kirkpatrick, C. (2014). Assessing the Impact of Regulatory Reform in Developing Countries // Public Administration and Development. Vol. 34, No. 3, pp. 162–168. doi: 10.1002/pad.1693
Search in Google Scholar Back to article
Kothari, C. (2017). Research Methodology Methods and Techniques. – New Age International (P) Ltd. Publishers.
Search in Google Scholar Back to article
Kusi, G., Mensah, J., Osei, K. A. (2019). Institutional Quality and Tax Revenue Mobilisation in SubSaharan Africa // World Development. Vol. 117, pp. 71–84.
Search in Google Scholar Back to article
Luoga, F. D. A. Makinyika. (2000). A Sourcebook of Income Tax Law in Tanzania. – Dar es Salaam University Limited.
Search in Google Scholar Back to article
Milosavljevic, M., Ignjatovic, M., Spasenić, Ž., Milanović, N., Đoković, A. (2024). Is There a Link between Tax Administration Performance and Tax Evasion? // Economies. Vol. 12, No. 8, pp. 193. doi: 10.3390/economies12080193
Search in Google Scholar Back to article
Moises Jr., C. (2020). Online Data Collection as an Adaptation in Conducting Quantitative and Qualitative Research During the COVID19 Pandemic // European journal of education studies. Vol. 7, No. 11. doi: 10.46827/ejes. v7i11.3336
Search in Google Scholar Back to article
Moore, M. (2008). Between Coercion and Contract: Competing Narratives on Taxation and Governance / In Governance and Tax Reforms in Developing Countries, eds. M. Moehler, K. Christian. doi: 10.1017/CBO9780511490897.002
Search in Google Scholar Back to article
Mugenda, O., Mugenda, A. (2003). Research Methods: Quantitative and Qualitative Approaches. – Africa Centre for Technology Studies.
Search in Google Scholar Back to article
Nnyanzi, J. B., Babyenda, P., Bbale, J. M. (2016). Regional Integration and Tax Revenue: Evidence from the East African Community // Journal of Economic Integration. Vol. 31, Issue 3, pp. 932–967. doi: 10.11130/jei.2016.31.4.932
Search in Google Scholar Back to article
North, D. C. (1990). Institutions, Institutional Change and Economic Performance. Political Economy of Institutions and Decisions. – Cambridge University Press, Cambridge. doi: 10.1017/CBO9780511808678
Search in Google Scholar Back to article
PwC Tanzania. (2024). Broadening Tanzania’s Tax Base. Internet access: https://www.pwc.co.tz/pressroom/broadeningtanzaniastaxbase.html
Search in Google Scholar Back to article
Royston, J. P. (1982). An Extension of Shapiro and Wilk’s W test for Normality to Large Samples // Journal of the Royal Statistical Society: Series C (Applied Statistics). Vol. 31, No. 2, pp. 115–124. doi: 10.2307/2347973
Search in Google Scholar Back to article
Saunders, M. L. P., Thornhill, A. (2012). Research Methods for Business Students (6th ed.). – Pearson, Essex.
Search in Google Scholar Back to article
Sghaier, I. M. (2018). Financial Development, Institutions and Economic Growth in North African Countries // Romanian Economic Journal. Vol. 20, No. 69, pp. 53–72. Internet access: https://ideas.repec.org/a/rej/journl/v21y2018i69p5372.html
Search in Google Scholar Back to article
Tabachnick, B. G., Fidell, L. S. (2019). Using Multivariate Statistics (7th ed.). – Pearson, Essex.
Search in Google Scholar Back to article
Végh, G., Gribnau, H. (2018). Tax Administration Good Governance // EC Tax Review. Vol. 27, No. 1, pp. 48–60. doi: 10.54648/ecta2018005
Search in Google Scholar Back to article

Articles in this issue

DOI: https://doi.org/10.2478/mosr-2025-0009 | Journal eISSN: 2335-8750 | Journal ISSN: 1392-1142

Journal RSS Feed

Language: English

Page range: 15 - 31

Submitted on: Sep 30, 2025

Accepted on: Dec 30, 2025

Published on: Apr 1, 2026

Published by: Vytautas Magnus University, Faculty of Economics and Management

In partnership with: Paradigm Publishing Services

Publication frequency: 2 issues per year

Keywords:

Related subjects:

Business and economics,

Business management,

Marketing, sales, customer relations,

Management, organization, corporate governance,

Business development, change management, cooperation,

Human resources, labor practice, job and career

© 2026 Modest Paul Assenga, published by Vytautas Magnus University, Faculty of Economics and Management
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Volume 94 (2025): Issue 1 (December 2025)