TABLE OF CONTENTS

DECLARATION

DEDICATION iii

TABLE OF CONTENTS v

LIST OF TABLES viii

LIST OF ACRONYMS ix

ABSTRACT x

CHAPTER ONE 1

1.0 Introduction 1

1.1 Background ofthe study 1

1.2 Statement ofthe Problem 2

1.3 Purpose ofthe study 3

1.4 Objectives ofthe study 3

1.4.1 General Objective 3

1.4.2 Specific Objectives 3

1.5 Research Questions 3

1.6 Scope ofthe study 4

1.6.1 Geographical scope 4

1.6.2 Subject scope 4

1.6.3 Time scope 4

1.7 Significance ofthe study 4

1.8 Conceptual / Theoretical Framework 6

1.9 Definition of key terms Revenue collection 7

CHAPTER TWO: LITERATURE REVIEW 8

2.0 Introduction 8

2.1 Challenges in Local Revenue Collection 8

2.2 Strategies for improving Local revenue collection 10

V

CHAPTER THREE: METHODOLOGY .16

3.1 Introduction 16

3.2 Research design 16

3.3 Study population 16

3.4 Sampling and Sampling Design 17

3.4.1 Survey Population 17

3.4.2 Sample size 17

3.5 Sources of data 18

3.5.1 Primary Data 18

3.5.2 Secondary Data 18

3.6 Data collection methods 18

3.6.1 Questionnaire 18

3.7 Data Processing 19

3.8 Data Analysis 19

3.9 Ethical Consideration 19

CHAPTER FOUR: PRESENTATIONS, INTERPRETATIONS AND ANALYSIS

OF DATA 20

4.0 Introduction 20

4.1 Demographic characteristics of respondents 20

4.1.1 Gender ofRespondents 20

4.1.2 Age ofthe Respondents 21

4.1.3 Marital Status ofthe Respondents 22

4.1.4 Education Levels ofthe Respondents 22

4.2 Findings on the challenges faced in local revenue collection 23

4.3 Findings on the strategies for improving Local revenue collection towards service

delivery 25

4.4 Findings on the relationship between revenue collection and service delivery 27

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CHAPTER FIVE: SUMMARY OF DISCUSSIONS, CONCLUSIONS AND

RECOMMENDATIONS 29

5.0 Introduction 29

5.1 Summary ofthe discussions 29

5.1.1 Challenges in Local revenue collection 29

5.1.2 Strategies for improving Local revenue collection 30

5.1.3 The relationship between revenue collection and service delivery 31

5.2 Conclusion ofthe Findings 32

5.3 Recommendations 33

5.4 Recommendation for Future Research 35

REFERENCE 36

APPENDICES 38

APPENDIX A: QUESTIONNAIRE 38

APPENDIX B: WORK PLAN 41

APPENDIX C: PROPOSED BUDGET 42

ABSTRACT

The study sought to establish the impact of revenue collection on service delivery in Mogadishu Local Government, Somalia. The study objectives were; to examine the challenges Mogadishu faced in the collection of revenue, to examine how service delivery in Mogadishu local government could be improved and to establish the relationship between revenue collection and service delivery in Mogadishu local government. A cross sectional survey was used in the course of the study. Both qualitative and quantitative data was gathered in order to establish the relationship between the independent and dependent variables, so as to examine the impact of revenue collection on service delivery in Mogadishu Local Government, Somalia. The study comprised of 60 respondents as a target population where by 50 respondents were sampled and these were; 10 Local government accountants, 20 Revenue officers, 10 Cashiers and 20 Local peasants. Simple random approach was used during the study. Purposive sampling was also used to select only respondents for the researcher to attain the purpose of the study. Data was collected from primary and secondary sources using questionnaires and interviews. After collecting data, the researcher organized well answered questionnaire, data was edited and sorted for the next stage. The data was presented in tabular form, pie charts and bar graphs with frequencies and percentages. The study found out that there are inadequate capacity and technical skills to manage Local revenue collection in Local Governments. The problem is compounded by the fact that many workers within the Local Government lack the necessary academic qualifications. The study also discovered that it was also alleged that politicians pressure and influence the procurement committees to award tenders. The study further concludes that most rapidly developing economies especially in local governments lack the advanced analytic tools and databases necessary to flag and follow up on suspicious taxpayer behavior automatically. There is need for proper tax assessment. This will enable the taxpayers to know the amount of revenue they are supposed to contribute. This may involve analyzing the various tax bases within the Local Government. The masses should be sensitized about the benefits of paying taxes. For example, they should be enlightened that their contribution in form of taxes leads to effective service delivery. The Local Government authorities should privatize the collection of revenue. This will enable increased revenue (income) as the private firms will ensure that the loopholes in the tax system are bridged or purged.