Research/academic paper

Outsourcing Revenue Collection to Private Agents: Experiences from Local Authorities in Tanzania

“Many local government authorities in Tanzania have reformed their tax collection systems in recent years in order to increase their revenue. This paper examines experiences with outsourced revenue collection of some local authorities in Tanzania. Based on evidence from four urban and three rural councils, the study examines how systems of privatised tax collection perform with respect to revenue generation, administration and accountability over 1996 to 2006. The selected councils are Dar Es Salaam, Mwanza City Councils, Ilala and Kinondoni Municipal Councils, Kilosa, Kisarawe and Moshi District Councils. The study concludes that outsourcing offers no quick fix to increase local government revenues or to reduce tax administrative problems. “