Improving property tax compliance in Tanzania

Tanzania shillings

Property tax should be a significant source of revenue for the Tanzanian government, but its contribution remains very low at about 0.16% of GDP. The non-compliance of property owners is a key reason why many local authorities collected less than 30% of the target for property taxes in 2015-16. A team of local PEP researchers conducted a randomized control trial to evaluate three potential policies to increase payment compliance. They found that sending reminder text messages (including threats of fines for non-compliance) combined with involving local leaders to encourage property tax payment increases compliance the most of the three options evaluated. 
Find out more about the research methods, findings and policy recommendations in the following PEP publications:

Country
Tanzania, United Republic of
Project code
20355

FUNDED BY

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Mastercard Foundation
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