Assessment of Electronic Fiscal Devices Adoption on Tax Collection in Tanzania: A Case of Tax payers in Mbeya City.

Talian, Nzunye Jailos (2025) Assessment of Electronic Fiscal Devices Adoption on Tax Collection in Tanzania: A Case of Tax payers in Mbeya City. Masters thesis, The Open University of Tanzania.

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Abstract

This research assesses the adoption of Electronic Fiscal Devices (EFDs) and their impact on tax collection in Tanzania, focusing at Mbeya City. The study addresses the reluctance of non-VAT registered taxpayers to adopt EFDs, attributed to high costs, technical issues, and network problems. The primary objective was to evaluate the effectiveness of EFDs in enhancing tax collection by the Tanzania Revenue Authority (TRA) and to identify environmental factors influencing their adoption. Using a random selection-methods approach, the research involved a sample of 140 traders in Mbeya City, analyzing data through Frequencies statistics and descriptive statistics. The findings reveal that while 76.2% of respondents acknowledged improved tax collection responsibility due to EFDs, 70% perceived the cost of EFDs as a significant barrier to their adoption. The study confirms that EFDs enhance tax compliance and efficiency, yet highlights the need for improved taxpayer education, financial incentives, and technical support to mitigate adoption barriers. Conclusively, the research underscores the necessity of comprehensive strategies to promote EFD adoption, thereby optimizing tax revenue collection and supporting Tanzania's economic development goals. Recommendations include introducing subsidies, enhancing training programs, and strengthening technical support to foster a favorable environment for EFD utilization. Key word; EFD adoption, Tax revenue increase, Tax payer’s correct information, avoidance of tax evasion

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