RUAHA CATHOLIC UNIVERSITY

Government electronic payment gateway (GePG) could not only help to overcome the challenges of corruption, tax evasion, tax exemption but also may facilitate the effectiveness and efficiency in revenue collection performance. However, there is little knowledge about the contribution of government electronic payment gateway system on revenue collection. This paper focuses on the assessment of contribution of government electronic payment gateway in effectiveness of revenue collection performance. The study was carried out in Iringa TRA Regional office. Mixed method include interview, questionnaire and documentary review were used to collect data from Iringa TRA Regional office. The quantitative data were analyzed using Statistical Package for Social Sciences (SPSS), while qualitative information was analyzed using content analysis. The study findings indicated that government electronic payment gateway system plays a significant role on effectiveness revenue collection performance. This is supported by the fact that the system facilitates transactions by eliminating the use of cash in government payments, enhance budget compliance, ensure compliance with rules and regulations, facilitate transferring of government income, reduce cost of compliance and reduce cases of taxes invasion or offense. The study concludes that efforts on taxes invasion, pro-poor taxation, cost of compliance and budget compliance is suggested for effectiveness revenue collection performance as it is lower than 80% decision criteria. This should go along with strengthening the use of electronic payment gateway system for effective and efficiency revenue collection performance.

Government electronic Payment Gateway System, Effectiveness on revenue collection performance, Iringa TRA Regional office