Trust in Public Finance : Citizens Views on Taxation by Local Authorities in Tanzania

"Part of the problem of raising local government revenues in Tanzania is persistent public resistance to paying, as evidenced by widespread tax evasion and non-payment of fees and charges. In the standard economic model of taxpayer behaviour, the perceived quality of the government does not influence the level of taxes remitted. The basic behavioural assumption is that no one will voluntarily contribute to the government unless the threat of punishment for non-payment makes it sensible to pay. However, an increasing amount of evidence shows that the rate of contribution to public services is affected by factors such as citizens trust in others and the trust-worthiness of the government. Findings from a recently conducted citizens survey support this proposition."