The Effectiveness of Electronic Fiscal Devices (EFDS) in Enhancing Revenue Collection for the Government of Tanzania: A Case Study of Tanzania Revenue Authority (TRA) In Dar es Salaam City Council, 2020.

Abstract

This paper presents the results of the study about an assessment of the effectiveness of Electronic Fiscal Devices (EFDS) in enhancing revenue collection for the government of Tanzania, where Tanzania Revenue Authority (TRA) in Dar es Salaam city council was used as a case study. The major aim was to assess the effectiveness of the Electronic Fiscal Devices in enhancing revenue collection for the Government of Tanzania. The data were collected by using a questionnaire whereby 60 taxpayers, 20 staffs from TRA and 20 staffs from the Ministry of Finance and Planning were involved. Respondents were selected using a convenient sampling technique. Both descriptive and inferential statistics were used to analyze data whereas a multiple regression model was adopted and frequency and percents were used in describing the information. Results also revealed that the speed of EFDs machine, the accuracy of EFDs machine and EFDs compliance of taxpayers are significant at p< 0.05 to the usefulness of EFDs machine in tax collection. Further, taxpayers are facing full implementations of EFDs hence the high cost of purchasing the devices and lack of education on the side of taxpayers concerning the use of EFDs among others. Through these challenges, the government can enhance purchasing price and maintenance costs downwards, an improvement on the system and network breakdown, increase of education, awareness and motivation on use.