Effects Of Tax Policy On Revenue Management In Local Governments. A Case Of Butaleja District Local Government

ABSTRACT This study was carried out to examine the Effects of Tax Policy on Revenue Management In Local Governrnents.The objects of the study included, to examine different local revenue collection sources in Butaleja District.to identify the limitations experienced by the tax authorities in Revenue, collection and management, to examine the Relationship between tax policy and revenue management in Butaleja District . That the major problem facing Butaleja District Local Government is that performance of local revenue is worrying. Local revenues have been declining since the abolition of Graduated Taxes. The key literature gap was that there was Poor that policy, lack tax collection machinery and lack clear systems of tax collection. Across sectional research design was used and both qualitative and quantitative techniques were used. Qualitative method was used to collect, present, interpret and analyse verbal data (descriptive) whereas, quantitative approach was used to interpret and analyse numerical data and this was done in form of tables, Figures, frequencies and percentages. The findings of the study indicate that increase in local revenue collection leads to increased service delivery and thus a significant relationship exists between local revenue collection and service delivery. Findings from the research study show that Butaleja district collects local revenue from different sources and they include licenses and permits, parking fees, fines and penalties, rent and rates, market dues in order to deliver services to the people. There has been low local revenue collection in Butaleja district and this has been due to the harshness of tax collectors, high administrative expenses corruption practiced by revenue officers ,inadequate sources or reven iie. political intervention. That there is positive relationship between Tax Policy and Revenue Management. Results from question showed that in all variables, the respondents had positive answers showing that there was linear positive relationship between the two variables. The researcher recommends that . Butaleja district needs to simplify the licensing process in order to reduce non compliance of businessmen to pay taxes. License registers should be computerized to reduce tax evasion and tax a voidance. Revenue collection in Butaleja district should be privatized by giving out tenders to individuals or companies to collect revenues on behalf of Butaleja district local government to reduce the increasing rate of tax defaulters. Enforcement teams should check businesses that have failed to pay taxes and penalize them accordingly