Revenue mobilization and revenue performance in local governments in Uganda:

Abstract

The study was conducted to examine the effect of Revenue Mobilization on Revenue Performance of Local governments particularly Nansana Municipal Council-Wakiso District and it was based on three specific objectives; to assess the effect of tax education on revenue performance of local governments; to examine the effect of tax assessment on revenue performance of local governments, and to establish the effect of revenue source identification on revenue performance of local governments. The study adopted cross-sectional research design, and quantitative approach to test the causal relationship and predictive power of the independent variable on dependent variable. Data was collected from a target population of 40 employees with accessible unit of inquiry being 36 employees of Nansana Municipal Council, using simple random and purposive sampling techniques. Data analysis was collected using a close ended questionnaire, entered in SPSS version 20 and analyzed using descriptive statistics that is frequencies and correlation and Regression results were obtained. The findings revealed that; tax education positively and significantly affects revenue performance; tax assessment positively and significantly affects revenue performance; and revenue source identification positively and significantly affects revenue performance. The researcher concluded that revenue remains an important resource in Uganda as well as the entire world generally since it acts as a way of financing part of local expenditure and to establish a degree of accountability to citizens for the expenditure decisions made by the local government in terms of infrastructure development, service delivery, eradication of poverty and economic transformation. We therefore recommend that the local governments should ensure that taxpayers are adequately sensitized and tax officials set moderate tax rates to enable them willingly to pay tax in time which will enable local governments to collect high revenue to enhance revenue performance.