Published November 30, 2024 | Version CC-BY-NC-ND 4.0
Journal article Open

Contribution of Simplicity of Prepaid LUKU Meter Billing System on Property Tax Revenue Collection in Moshi Municipality, Tanzania

Creators

  • 1. Department of Domestic Revenue, Mwenge Catholic University, Moshi (Tanzania), East Africa.

Contributors

Contact person:

  • 1. Department of Domestic Revenue, Mwenge Catholic University, Moshi (Tanzania), East Africa.
  • 2. Department of Economics and Business Studies (DEBS), Mwenge Catholic University (MWECAU), Moshi (Tanzania), East Africa.

Description

Abstract: The simplicity of electronic systems, including prepaid billing systems, has been said to simplify life for clients and service providers. The Tanzania Revenue Authority (TRA) collects property tax through the 'Lipa Umeme Kadili Utumiavyo' (LUKU) prepaid electricity billing system. This study sought to establish the influence of the system's simplicity on property revenue collection by TRA in Moshi Municipality. A concurrent research design with a mixed research approach was employed. The study was informed by the ability to pay principal theory. The study population was 14,364 premises installed with LUKU meters in the study area. A sample size of 192, determined by Fisher (1991), was used. A questionnaire was used to collect primary. Secondary data was obtained using a documentary review guide to gather data from audited reports of TRA from the financial year 2018/2019 to 2022/2023 (5 years). Content validity was used to ensure the instrument's validity, while reliability was ensured through testretest measures. A statistical package for social science (SPSS) was used as an aid for data analysis where the regression models were run. The study anticipated an observable relationship between the simplicity of the LUKU system and property tax collection (independent and dependent variables), respectively. The study established that the simplicity of the LUKU system contributes to property tax collection in the study area at p-value < 0.05. The study concluded that the simplicity of use of the LUKU prepaid billing system has increased property tax revenue collection for TRA. It is recommended that TANESCO convert more meters into prepaid, as it will enhance property tax revenue collection capabilities and, at the same time, reduce costs associated with collection.

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Additional details

Identifiers

DOI
10.54105/ijef.B2592.04021124
EISSN
2582-9378

Dates

Accepted
2024-11-15
Manuscript received on 25 August 2024 | Revised Manuscript received on 25 September 2024 | Manuscript Accepted on 15 November 2024 | Manuscript published on 30 November 2024.

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