Abstract

This study sought to analyze contribution of Petty Traders (commonly known as Machinga on Revenue Collection using Mburahati Ward of Ubungo Municipality Dar es Salaam. The study studied on how Machinga businesses are done, how much revenue is generated by these businesses and effects of Machinga businesses on revenue collection.  The study used an exploratory research design where Statistical Package for Social Scientists (SPSS) version 20.0 software was used to analyze data and presented them in the form of tables, charts, and graphs which helped to draw conclusions. 
The findings were obtained from a total of 99 respondents , one(1) trade officer and one (1) machinga leader were interviewed. Findings shows that huge number of Machinga at Mburahati are selling vegetables (36.1%) followed by 23.7% who are selling fruits and 74.2% does their business in Machinga market due government restrictions as 87.6 % of respondents said they are not allowed to business in any place. Also finding show 78.4% of Machinga they are unaware of policy that governs them and 86.6% argued that Tanzania policy doesn’t favor growth of their business. Findings show that huge number of respondents 67% their monthly sales turnover is approximately ranges 50,000-100,000 and only 4 respondents, (4.1%) indicated that their sales monthly sales revenue is over 360,000.  Findings show that huge number of respondents 53.6 % they don’t pay taxes on their daily business operations and the remaining 46.4% claimed that they pay taxes on their daily business operations. Findings show 97.9% of respondents they don’t own shares in any institution, only 2 respondents (2.1%) indicated that they own shares. However, 21 respondents, 21.6%, suggested government should offer free interest loans,19 respondents, 19.6% suggested government should offer free capital to boost their businesses, 16 respondents, 16.5% suggest government should offer low interest loan. Hence Machinga businesses do not contribute to directly Revenue collection.