Effectiveness in Tax Payment by Rural Micro Enterprises in Tanzania

Taxation in Tanzania started from colonial era, it is a very important source of government revenue; hence it enables the government to finance its functions including administrative, social, protective, and development functions.  Despite the fact that, tax is compulsory payment that enables the government to finance its various activities, many residents still do not like paying tax. Therefore, this study assessed effectiveness in tax payment by rural micro enterprises in Meru district in Tanzania.The study collected and used both primary and secondary data.  Primary data were collected from a sample of 200 respondents including tax assessors, business owners, and employed managers through questionnaires and interviews.  The study revealed that, there was no effectiveness in tax payment by rural micro enterprises in Meru district in Tanzania.  It was recommended for the government through TRA to provide taxpayer education and training, lowering the tax rates, creating friendly relationship with tax payers, removal of tax incentives or exclusion among big corporations, and good governance of tax collected. Keywords: Effectiveness, Micro Enterprises, Tax, Tax Complianc