Factors Affecting Collection Of Non-oil Revenue In South Sudan

Abstract

All over the world, the responsibility of any working nation is to provide services to the citizens. The insufficient collection of non-oil revenue has disabled many crucial services to the citizen; for instance, social amenities in the region. Thus, this study proposes to expound on the factors that weaken the collection of non-oil revenues apart from war and it propose various prospects to capitalize in order to utilize the resources adequately. The study further anticipates to examine the effect of staff competence, tax rate, taxpayer’s knowledge and tax compliance cost on collection of non-oil revenues in South Sudan respectively. It has employed methods like descriptive research design and probability sampling techniques. Therefore, fulfilling the intended purpose for this study, the researcher targeted 1,093 businesses who were taxpayers in Juba town as its population. Additionally, Yamane’s formula as elaborated later helped to come up with sample size of 293 respondents from where 249 responses were gathered. The study used questionnaire to collect primary data. Findings were presented using frequencies, percentages, means and standard deviations. Multiple linear regression to bring out the association between the independent variables and dependent variables in line with the research. Significance was tested at five percent level. According to the results, the study noted that every unit rise in staff competence led to a significant increase (β=0.6455, p value=0.005) in Non-oil revenue collection. Similarly, for each unit rise in tax rate, there is a significant increase (β=0.254, p value=0.021) in Non-oil revenue collection and the tax payers’ knowledge led to a significant rise (β=0.3055, p value=0.033) in Non-oil revenue collection. On the other hand, tax compliance cost led to an insignificant (p value=0.423) decline (β=0.1704, p value=0.423) in Non-oil revenue collection. As per the outcomes, the study suggests for a need to improving staff competence through coaching sessions and voluntary trainings, adjustment of tax rates, and to determine appropriate programs intended at educating taxpayers concerning their tax rights, legal requirements and responsibilities as it encouraged voluntary compliance amongst taxpayers in South Sudan.