Assessment of Challenges Facing the Implementation of Electronic Fiscal Devices (EFDs) in Revenue Collection in Tanzania

Abstract

This study aimed to assess the challenges facing the implementation of using Electronic Fiscal Device (EFD) in tax collection in Tanzania. The system to a great extent assisted in sealing loopholes of tax evasion in Tanzania. The system had also assisted in improvement on tax compliance. It was however established that the system is yet to be fully institutionalized in the TRA system. The study established that the Authority is still experiencing some resistance to change from both internal and external customers.  Thus, through major findings of the study; it has been indicated that EFD system had a lot of challenges which hinder the implementation of using the machine though the system enhanced tax collection in business premises in Tanzania. Those challenges include regular break down, fairness of tax estimated from tax payers, lack of education on the use of EFDs machines, maintenance of machines and under pricing of tax from traders. The study recommends that stakeholders need more awareness of the system and friendly environment of using EFD machines in which they suggest strongly strategies for improvements of the system.