PRODUCE CESS TAXATION IN TANZANIA MAINLAND: THE CASE OF COFFEE LEVIES IN RUNGWE DISTRICT COUNCIL

Abstract

In recent years, there has been substantial scholarly interest in the importance of local government authorities (LGAs) generating sufficient local revenues. It is crucial that LGAs generate sufficient local revenue, as decentralisation reforms have assigned these entities the responsibility of delivering public services, such as education, health and agricultural extension. This paper analyses the produce cess taxation regime in Mainland Tanzania, with a focus on coffee levies in the Rungwe District Council. Data, both qualitative and quantitative, were collected through a cross-sectional design. The paper employs content analysis and Microsoft Excel software to analyse both qualitative and quantitative data. The paper indicates that the obligation to pay coffee levies may be placed on farmers, despite the law clearly assigning this responsibility to buyers. The paper recommends that the Local Government Finance Act be amended to define the term inhabitants and categories of inhabitants who are required to pay crop levies.