A Dissertation Submitted in Partial Fulfillment of the Requirement for Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of the Mzumbe University
This research aimed to determine the effective management of sales and tax collection through the use of EFD machines in Ilala Region. In dealing with tax avoidance behavior of some tax payers. TRA adopted EFD machines on July 2010 and the machines was first implemented by VAT registered traders and then followed by non VAT registered traders.
The general objective was to assess effective management of sales and tax collection through the use of EFD machines by focusing on both VAT registered and non VAT registered traders. With some specific objectives of the study were to assess the adoption and usage rate of EFD machines by traders, to assess the effectiveness of sales personnel in use of EFD machines to manage sales, assess the impact of EFD machines in revenue collection, evaluate the challenges traders face in operating with EFD machines and examining the support provided by TRA to traders operating with EFD machines.
The study used interviews, observation and Questionnaires methods to collect primary data from the field, and documentary review to collect secondary data. Also SPSS soft ware was used to analyze the data collected and then displayed in tables, histograms and pie charts.
The research findings indicated that there was an increase in revenue collection associated with the adoption of effective EFD machine uses in Ilala Region. Also it was observed that traders were able to manage their sales through effective EFD machines uses. As they were able to have day to day sales record since they issue receipts in every transaction taking place.
It was concluded that the effective EFD uses has been hindered by some challenges such as the higher price to acquire the machine, poor after sale service, frequent breakdown of machines and lack of enough awareness on how to operate the EFD machines. These challenges have been reducing the trader’s morale towards effective EFD’s uses. The study recommends that TRA should focus on removing the challenges facing the EFD users so as to attain the effective EFD machine uses.