Impacts and Challenges of Implementing Electronic Fiscal Devices in Tanzania Revenue Authority, The Case of Domestic Revenue Department, Dar es Salaam
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Mzumbe university
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A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of
the Degree of Master of Business Administration (Corporate Management) of
Mzumbe University.
The study is on the impacts and challenges of implementing electronic fiscal devices in Tanzania revenue authority, the case of domestic revenue department, Dar es Salaam. The study evaluated strategies employed by TRA to implement EFDs in Tanzania, determined the factors inhibiting implementations of EFDs in Tanzania and examined the overall outcomes of the EFDs regime on tax compliance and tax collection growth in domestic revenue department, Dar-es salaam. The study involved (56.4%) Females and (43.5%) Males. Data collection methods were questionnaires, documentary review, interview questions and personal interview. Tanzania Revenue Authority is implementing its Third Corporate Plan (2008/2009 – 2012/2013) from 1st July 2008, which has five strategic goals. Goal number one addresses the core function of the Authority and attaches more weight on the need to collect revenue to capacity levels in a cost effective way. The Corporate Plan’s Goal number four among others, is the initiative of introducing a robust ECR system for all VAT traders. This key initiative will enable the Authority realize its ultimate goal of tax revenue enhancement and collection to capacity levels. To achieve this goal, there has been an urgent need to review the existing Electronic Cash Registers (ECRs) functionality and deliverability with a view of replacing them with the robust Electronic Fiscal Devices. The need to replace the ECR with a robust Electronic Fiscal Device (EFD) has not only been prompted by the urge to compel VAT traders to record all transactions, but also necessitated by the Government to increase collection in a cost effective way. It is the Authority’s commitment to provide high quality customer services that meet their needs and exceed expectations, and to this end, continuous improvements of Authority’s systems processes and procedures count very much in the Authority’s dealings, and among system improvements is EFD Introduction.
The study is on the impacts and challenges of implementing electronic fiscal devices in Tanzania revenue authority, the case of domestic revenue department, Dar es Salaam. The study evaluated strategies employed by TRA to implement EFDs in Tanzania, determined the factors inhibiting implementations of EFDs in Tanzania and examined the overall outcomes of the EFDs regime on tax compliance and tax collection growth in domestic revenue department, Dar-es salaam. The study involved (56.4%) Females and (43.5%) Males. Data collection methods were questionnaires, documentary review, interview questions and personal interview. Tanzania Revenue Authority is implementing its Third Corporate Plan (2008/2009 – 2012/2013) from 1st July 2008, which has five strategic goals. Goal number one addresses the core function of the Authority and attaches more weight on the need to collect revenue to capacity levels in a cost effective way. The Corporate Plan’s Goal number four among others, is the initiative of introducing a robust ECR system for all VAT traders. This key initiative will enable the Authority realize its ultimate goal of tax revenue enhancement and collection to capacity levels. To achieve this goal, there has been an urgent need to review the existing Electronic Cash Registers (ECRs) functionality and deliverability with a view of replacing them with the robust Electronic Fiscal Devices. The need to replace the ECR with a robust Electronic Fiscal Device (EFD) has not only been prompted by the urge to compel VAT traders to record all transactions, but also necessitated by the Government to increase collection in a cost effective way. It is the Authority’s commitment to provide high quality customer services that meet their needs and exceed expectations, and to this end, continuous improvements of Authority’s systems processes and procedures count very much in the Authority’s dealings, and among system improvements is EFD Introduction.
Keywords
Electronic Fiscal Devices