Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar

Haji Mohamed Haji; Abdalla Ussi Hamad

doi:doi:10.11648/j.jfa.20221002.13

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Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar

Haji Mohamed Haji, Abdalla Ussi Hamad

Published in Journal of Finance and Accounting (Volume 10, Issue 2)

Received: 30 December 2021 Accepted: 4 February 2022 Published: 29 March 2022

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Abstract

The main aim of this study is examining the effect of tax exemption for domestic investors on the government revenue collection in Zanzibar. Specifically, the researcher concentrated on two types of exemptions, these are; absolute and partial tax exemptions. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random technique was used to select research respondents of 100 sample size and survey questionnaire was used as data collection instrument. To achieve a credible study a multiple regression was used to analyze the collected data from relevant respondents. The study has revealed that one predictor (partial tax exemption) had a significant effect or impact on the outcome variable (government revenue collection). However, one predictor variable that is absolute tax exemption did not show any significant result. The study concluded that tax exemption is a good instrument to stimulate and attract domestic investors when other issues have been incorporated into the procedures, alone, it cannot stand as the only factor. Finally, the study recommended as the tax incentives and exemptions work or not, there is a need for transparency, public scrutiny and dialogue, equity and bargaining are essential to building a culture of tax compliance.

Published in	Journal of Finance and Accounting (Volume 10, Issue 2)
DOI	10.11648/j.jfa.20221002.13
Page(s)	107-111
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Absolute Tax Exempted, Partial Tax Exempted, Government Revenue Collection, Domestic Investors

References

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[6]	Mureșan, M., D. David, E. L. E. K. Ladislau and F. Dumiter, (2014). Value added tax impact on economic activity: Importance, implication and assessment–the Romanian experience. Transylvanian Review of Administrative Sciences, 10 (SI).
[7]	Bumpei, M., (2011). The effect of the VAT rate change on aggregate consumption and economic growth. Centre on Japanese Economy and Business, Working Paper Series, No. 297, pp: 1-31.
[8]	Adereti, S. A., J. A. Adesina and M. R. Sanni, (2011). Value added tax and economic growth of Nigeria. European Journal of Humanities and Social Science, 10 (1): 555-579.
[9]	Owolabi, S. A. and A. Okwu. (2011), Empirical evaluation of contribution of value added tax. European Journal of Humanities and Social Sciences, 9 (1): 24-34.
[10]	Oloichi, G. A., 2014. Company income tax and investment decision: A behavioral approach. Journal of Business and Management, 16 (7): 11-14.
[11]	Asogwa, F. O. and M. N. Okeke, 2013. Valued added tax and investment growth in Nigeria. Journal of Humanities and Social Sciences, 18 (1): 28-31. Available at: https://doi.org/10.9790/0837-1812831
[12]	Njuru, S. G., C. Ombuku, N. Wawire and S. Okeri, (2013), Taxation and private investment: Evidence of Kenya. International Journal of Economics and Management Sciences, 11: 78–93.
[13]	Makere, P. N. (2013), Impact of Tax Exemption and Tax Relief for Foreign Investors towards Government Revenue: Mzumbe University.
[14]	Edame, G. E., and W. W. Okoi, 2014. The impact of taxation on investment and economic development in Nigeria. Academic Journal of Interdisciplinary Studies, 3 (4): 209-218. Available at: https://doi.org/10.5901/ajis.2014.v3n4p209
[15]	Ezejiofor, R. A., P. Adigwe and F. N. Echekoba, 2015. Tax as a fiscal policy and manufacturing company’s performance as an Engine for Economic Growth in Nigeria. European Journal of Business, Economics and Accountancy, 3 (3): 1-12.
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[17]	Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. 2014. Multivariate Data Analysis: Person New International Edition (7th ed.). New Jersey, United States of America: Pearson Prentice Hall.
[18]	Pallant, J. (2016). SPSS Survival Manual (6th ed.). New York, United States of America: McGraw-Hill.

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APA Style

Haji Mohamed Haji, Abdalla Ussi Hamad. (2022). Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar. Journal of Finance and Accounting, 10(2), 107-111. https://doi.org/10.11648/j.jfa.20221002.13

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ACS Style

Haji Mohamed Haji; Abdalla Ussi Hamad. Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar. J. Finance Account. 2022, 10(2), 107-111. doi: 10.11648/j.jfa.20221002.13

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AMA Style

Haji Mohamed Haji, Abdalla Ussi Hamad. Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar. J Finance Account. 2022;10(2):107-111. doi: 10.11648/j.jfa.20221002.13

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@article{10.11648/j.jfa.20221002.13,
  author = {Haji Mohamed Haji and Abdalla Ussi Hamad},
  title = {Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar},
  journal = {Journal of Finance and Accounting},
  volume = {10},
  number = {2},
  pages = {107-111},
  doi = {10.11648/j.jfa.20221002.13},
  url = {https://doi.org/10.11648/j.jfa.20221002.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20221002.13},
  abstract = {The main aim of this study is examining the effect of tax exemption for domestic investors on the government revenue collection in Zanzibar. Specifically, the researcher concentrated on two types of exemptions, these are; absolute and partial tax exemptions. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random technique was used to select research respondents of 100 sample size and survey questionnaire was used as data collection instrument. To achieve a credible study a multiple regression was used to analyze the collected data from relevant respondents. The study has revealed that one predictor (partial tax exemption) had a significant effect or impact on the outcome variable (government revenue collection). However, one predictor variable that is absolute tax exemption did not show any significant result. The study concluded that tax exemption is a good instrument to stimulate and attract domestic investors when other issues have been incorporated into the procedures, alone, it cannot stand as the only factor. Finally, the study recommended as the tax incentives and exemptions work or not, there is a need for transparency, public scrutiny and dialogue, equity and bargaining are essential to building a culture of tax compliance.},
 year = {2022}
}

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TY  - JOUR
T1  - Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar
AU  - Haji Mohamed Haji
AU  - Abdalla Ussi Hamad
Y1  - 2022/03/29
PY  - 2022
N1  - https://doi.org/10.11648/j.jfa.20221002.13
DO  - 10.11648/j.jfa.20221002.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 107
EP  - 111
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20221002.13
AB  - The main aim of this study is examining the effect of tax exemption for domestic investors on the government revenue collection in Zanzibar. Specifically, the researcher concentrated on two types of exemptions, these are; absolute and partial tax exemptions. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random technique was used to select research respondents of 100 sample size and survey questionnaire was used as data collection instrument. To achieve a credible study a multiple regression was used to analyze the collected data from relevant respondents. The study has revealed that one predictor (partial tax exemption) had a significant effect or impact on the outcome variable (government revenue collection). However, one predictor variable that is absolute tax exemption did not show any significant result. The study concluded that tax exemption is a good instrument to stimulate and attract domestic investors when other issues have been incorporated into the procedures, alone, it cannot stand as the only factor. Finally, the study recommended as the tax incentives and exemptions work or not, there is a need for transparency, public scrutiny and dialogue, equity and bargaining are essential to building a culture of tax compliance.
VL  - 10
IS  - 2
ER  -

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Author Information

Haji Mohamed Haji

Department of Accounting and Finance, Zanzibar University, Zanzibar, Tanzania
Abdalla Ussi Hamad

Department of Economic, Zanzibar University, Zanzibar, Tanzania

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APA Style

Haji Mohamed Haji, Abdalla Ussi Hamad. (2022). Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar. Journal of Finance and Accounting, 10(2), 107-111. https://doi.org/10.11648/j.jfa.20221002.13

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ACS Style

Haji Mohamed Haji; Abdalla Ussi Hamad. Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar. J. Finance Account. 2022, 10(2), 107-111. doi: 10.11648/j.jfa.20221002.13

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AMA Style

Haji Mohamed Haji, Abdalla Ussi Hamad. Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar. J Finance Account. 2022;10(2):107-111. doi: 10.11648/j.jfa.20221002.13

Copy | Download

@article{10.11648/j.jfa.20221002.13,
  author = {Haji Mohamed Haji and Abdalla Ussi Hamad},
  title = {Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar},
  journal = {Journal of Finance and Accounting},
  volume = {10},
  number = {2},
  pages = {107-111},
  doi = {10.11648/j.jfa.20221002.13},
  url = {https://doi.org/10.11648/j.jfa.20221002.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20221002.13},
  abstract = {The main aim of this study is examining the effect of tax exemption for domestic investors on the government revenue collection in Zanzibar. Specifically, the researcher concentrated on two types of exemptions, these are; absolute and partial tax exemptions. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random technique was used to select research respondents of 100 sample size and survey questionnaire was used as data collection instrument. To achieve a credible study a multiple regression was used to analyze the collected data from relevant respondents. The study has revealed that one predictor (partial tax exemption) had a significant effect or impact on the outcome variable (government revenue collection). However, one predictor variable that is absolute tax exemption did not show any significant result. The study concluded that tax exemption is a good instrument to stimulate and attract domestic investors when other issues have been incorporated into the procedures, alone, it cannot stand as the only factor. Finally, the study recommended as the tax incentives and exemptions work or not, there is a need for transparency, public scrutiny and dialogue, equity and bargaining are essential to building a culture of tax compliance.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Effect of Tax Exemption for Domestic Investors on Government Revenue Collection in Zanzibar
AU  - Haji Mohamed Haji
AU  - Abdalla Ussi Hamad
Y1  - 2022/03/29
PY  - 2022
N1  - https://doi.org/10.11648/j.jfa.20221002.13
DO  - 10.11648/j.jfa.20221002.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 107
EP  - 111
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20221002.13
AB  - The main aim of this study is examining the effect of tax exemption for domestic investors on the government revenue collection in Zanzibar. Specifically, the researcher concentrated on two types of exemptions, these are; absolute and partial tax exemptions. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. A simple random technique was used to select research respondents of 100 sample size and survey questionnaire was used as data collection instrument. To achieve a credible study a multiple regression was used to analyze the collected data from relevant respondents. The study has revealed that one predictor (partial tax exemption) had a significant effect or impact on the outcome variable (government revenue collection). However, one predictor variable that is absolute tax exemption did not show any significant result. The study concluded that tax exemption is a good instrument to stimulate and attract domestic investors when other issues have been incorporated into the procedures, alone, it cannot stand as the only factor. Finally, the study recommended as the tax incentives and exemptions work or not, there is a need for transparency, public scrutiny and dialogue, equity and bargaining are essential to building a culture of tax compliance.
VL  - 10
IS  - 2
ER  -

Copy | Download