A DESCRIPTIVE, CROSS-SECTIONAL STUDY ABOUT THE RELATIONSHIP BETWEEN LOCAL TAX COLLECTION AND SERVICE DELIVERY IN KASESE MUNICIPALITY.

Jostus Mukirania; Edmand Bakashaba; Muhammad Sendagi

doi:10.51168/sjhrafrica.v4i12.747

Authors

Jostus Mukirania Team University P.O Box 8128 Kampala Uganda.
Edmand Bakashaba Team University P.O Box 8128 Kampala Uganda.
Muhammad Sendagi Team University P.O Box 8128 Kampala Uganda.

DOI:

https://doi.org/10.51168/sjhrafrica.v4i12.747

Abstract

Background

This study aims to determine the relationship between local tax collection and service delivery in Kasese Municipality.

Methodology

A sample size of 130 respondents was selected using the Krejcie & Morgan sample size table from the study population. Descriptive statistics were used to analyze single variables and inferential statistics were used to establish the relationships of two variables in line with study objectives. Multivariate analysis was also carried out using regressions

Results

The findings revealed local tax collected in Kasese Municipality is not sufficient to provide the required services, business license is insufficient to sustain service delivery in Kasese Municipality. Also, the findings showed that local tax was usually diverted by municipal officials for private gains in Kasese Municipality, and believed the cost of local tax collection was very high, thus encroaching a big percentage of the revenue in Kasese Municipality. There was a lack of transparency in local tax collection for service delivery in Kasese Municipality and local tax collection has an impact on service delivery in Kasese district.

The correlation between local tax collection and service delivery was 0.712 with a significance value of 0.000. There was a positive significant relationship between local tax collection and service delivery in Kasese Municipality.

Conclusion

Results showed that service delivery was 43% predicted by local tax collection (Adjusted R Square =.43). Therefore, local tax collection affects service delivery in Kasese Municipality.

Recommendation

The Municipal Council should revise some of the local taxes levied, methods of tax collection, and payment methods for full maximization of local revenue for service delivery. The Municipal council should also embrace electronic methods of local revenue collection, and training of the business community in the assessment of local tax.