Perceptions of tax enforcement in Tanzania: Implications for compliance and policy reform

This study examines taxpayers’ perceptions of tax enforcement effectiveness in Tanzania and their implications for tax compliance and policy reform. Using cross-sectional data from Afrobarometer 2021 (Round 8) and a generalized ordered logit model based on a sample of 2,144 observations, the study evaluates how institutional, economic, and socio-demographic factors influence compliance behaviour. The results show that perceived effectiveness of tax enforcement significantly increases the likelihood of compliance, particularly among urban and formally employed taxpayers. However, lower compliance is observed among informal sector participants, reflecting structural and institutional constraints. The findings further, indicate that trust in tax authorities and enforcement consistency play a critical role in shaping compliance decisions. The study concludes that strengthening enforcement transparency, improving taxpayer trust, and expanding digital tax systems are essential for enhancing compliance in Tanzania. These findings provide important policy insights for improving revenue mobilization in developing economies.