Effect of Tax Collection to the Economic Development of Rwanda; A Case of Musanze District (2019-2023)

KIZITO Nizeyimana

doi:10.36948/ijfmr.2024.v06i02.18853

Effect of Tax Collection to the Economic Development of Rwanda; A Case of Musanze District (2019-2023)

Author(s)	KIZITO Nizeyimana
Country	Rwanda
Abstract	The general objective of this study was to analyze the effects of tax collection to the economic development of Rwanda; a case study of Musanze district (2019-2023) while the specific objectives of this study were; To evaluate the effect of income tax on economic development of Musanze district, to determine the effects of custom duties on economic development of Musanze district and to assess the effects of Value added tax on economic development of Musanze district (2019-2023). The researcher used a regression research design, where qualitative approach was used. The population of the study concerned 56 employees work in Musanze District while a sample size was 56; questionnaire, documentation and interview are instrument for this research then data was collected was analyzed by SPSS. It revealed that most of the respondents (Mean=4.03, SD=.126) supported the argument that imposing tariffs on imported goods, governments generates income to fund public expenditure. (Mean=4.01, SD=.172) answered that custom duties protects domestic industries; similarly, the respondents agreed there custom duties allows safeguard against dumping practices, (Mean=3.98, SD=.417). Correlation coefficient of X1 was β =0.166 and p<0.021) this indicates that income tax is enhanced by one unit, economic development of Musanze district will increase by of X2 was β =0.325 and p<0.020. The findings also indicated that X3 was β=0.178, p=0.041 means that when Value Added Tax increase at single unit, the level of economic development will increase at 0.328 and when customs duties is enhanced at single unit, economic development of Musanze district will increase at 0.178. Finally the findings indicated that there is a statistically significant positive correlation between predictor variables and the independent variables; findings indicate that there is a significant positive relationship between the components of tax collection namely income tax, Value Added Tax and customs duties. Study recommended that Musanze district should Improving the tax system; the tax system may need to be improved to allow for a more efficient and equitable way of collecting taxes, educating the public; educating taxpayers on the importance of paying taxes and how the taxes are utilized by the government can go a long way in increasing compliance, enforcing compliance, combating corruption which is one of the main reasons for poor tax collection systems and reinforcing technology in tax collection.
Keywords	Key words: tax, income tax, value added tax, customs duties, economic development.
Field	Business Administration
Published In	Volume 6, Issue 2, March-April 2024
Published On	2024-04-30
Cite This	Effect of Tax Collection to the Economic Development of Rwanda; A Case of Musanze District (2019-2023) - KIZITO Nizeyimana - IJFMR Volume 6, Issue 2, March-April 2024. DOI 10.36948/ijfmr.2024.v06i02.18853
DOI	https://doi.org/10.36948/ijfmr.2024.v06i02.18853
Short DOI	https://doi.org/gts4sg

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Effect of Tax Collection to the Economic Development of Rwanda; A Case of Musanze District (2019-2023)

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