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

This study examined the effect of tax compliance cost on taxpayers ‘voluntary tax compliance in Tanzania, to attain this objective, qualitative and quantitative research approaches were used. A cross-sectional survey research design technique of data collection method was used. Both primary data and secondary data in the form of interviews, document reviews, and surveys were used.Questionnaires were used as a tool for collecting data, and systematic and unsystematic random sampling, as well as purposive sampling, was used. This study drew a sample size of 99 small and medium taxpayers from a population of 12,670 small and medium taxpayers who are registered in the Dodoma Region. The results showed that when the taxpayers’ compliance cost is very high and causes 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 study recommended that the Tanzania Revenue Authority (TRA) should reduce the costs associated with taxpayers’ voluntary compliance as much as possible by simplifying the procedures of paying taxes, Also, the study recommended that the responsibility of combating these costs both to the government and the taxpayers. The study concluded that the high taxpayers’ compliance cost causes non-tax compliance