A Dissertation Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University 2017The general objective of the study was to assess factors hindering taxpayers on the use of electronic fiscal devices (EFDs) in Tanzania using Hotels and Restaurants in Ilala District as a case of the study. The study was guided by three specific research objectives which were to identify taxpayers’ negative perceptions on the use of EFDs, to assess costs and technical risks associated with EFDs among taxpayers, and to identify factors that can motivate taxpayers on the use of EFDs. The study adopted both qualitative and quantitative approaches and used a case study design where a mix of data collection methods were used. Primary data were collected using questionnaire from 50 hotels and restaurants registered and 50 hotels and restaurants not registered with EFDs but with the annual turnover of 14million at Ilala District. Also the EFD agents and TRA officers responsible for EFDs were interviewed. Secondary data were collected from reports that were made available to the researcher from EFD agent offices and the TRA office at Ilala Tax region. Using SPSS the data were analysed using frequency distribution and descriptive statistics. The coefficient of variation was used to rank the strongest factor. Nevertheless, the influence of perceived costs on the use of EFDs was tested using Chi square test statistics. Tables and graphs were used for presentation of findings whereas descriptions and quotations were used to present qualitative data. The findings reveal in its majority that taxpayers’ negative perceptions, higher costs and technical risks associated with use of EFDs are the key factors hindering the use of EFDs among taxpayers. Negative perceptions such as over taxation by 49%, a lot of operational errors associated with EFDs by 40% and the fact that 63% of taxpayers consider EFDs as very costly that limit taxpayers’ willingness to adopt this invention. On the other hand, costs associated with the use of EFDs in terms of installation costs is huge twice the average willingness to pay for the same and maintenance and repair costs is higher than the real costs for the same services. Thus, the study recommends that cost cut down, lawful mobilization and reinforcement, training and technical risks management are necessarily to be realized for increased use of EFDs among taxpayers.