The Effect of Tax Compliance Cost on Taxpayer’s Voluntary Compliance in Tanzania

This study examined the effect of tax compliance cost on taxpayers ‘voluntary taxcompliance in Tanzania, to attain this objective, qualitative and quantitativeresearch approaches were used. A cross-sectional survey research designtechnique of data collection method was used. Both primary data and secondarydata in the form of interviews, document reviews, and surveys were used.Questionnaires were used as a tool for collecting data, and systematic andunsystematic random sampling, as well as purposive sampling, was used. Thisstudy drew a sample size of 99 small and medium taxpayers from a population of12,670 small and medium taxpayers who are registered in the Dodoma Region.The results showed that when the taxpayers’ compliance cost is very high andcauses a decrease in taxpayers’ voluntary compliance, the cost of taxpayers’compliance including monetary cost such as consultancy cost and tax audit costs,psychological cost as well as time cost still challenge the taxpayers and lastly thehigh taxpayers’ compliance cost causes non-tax compliance. This studyrecommended that the Tanzania Revenue Authority (TRA) should reduce thecosts associated with taxpayers’ voluntary compliance as much as possible bysimplifying the procedures of paying taxes, Also, the study recommended that theresponsibility of combating these costs both to the government and the taxpayers.The study concluded that the high taxpayers’ compliance cost causes non-taxcompliance