A Dissertation Submitted to the School of Business in Partial fulfillment of the Requirements for the Award of Master of Business Administration (MBA) of Mzumbe University
The purpose of this study was to assess the challenges facing the adoption of
Electronic Fiscal Devices (EFDs) in revenue collection in Morogoro Municipality.
Specifically, the study was meant to examine the availability of EFDs to Tax payers
in Morogoro Municipality; to study the capacity of traders on the use of EFDs and to
examine the attitude of traders towards use of EFDs. The study employed both
deductive and inductive research approached in collecting and analyzing data.
Based on the findings, the study concluded that in Morogoro Municipality, there is
insufficient availability of EFDs as there are some areas that have not been located
with EFDs suppliers. Although suppliers do train traders on how to use the gadgets
before their installation at traders’ business premises, traders are not acquainted
adequately on how to use the EFDs properly. Due to insufficient number of
suppliers, traders do not get immediate technical support when they get problem
with the devices, also there is no reliable power and internet connectivity in
Morogoro Municipality. Lastly, traders in Morogoro Municipality have negative
attitude toward the use of EFD machines, number of them claimed that, EFDs are
very expensive devices for them to afford.
The study recommends that, TRA should take remedial measures to ensure that there
is a sufficient number of agents supplying EFD machine in order to lessen or remove
the problem created by few number of suppliers in Morogoro Municipality. TRA
should introduce EFDs that could work offline and when the network is stabilized
TRA should be able to retrieve the records of transactions that were done during the
network failure. That TRA should hire the devices that use rechargeable batteries or
use solar energy to solve the problem of power failure. Lastly, to lower the burden of
purchasing EFDs, the government through TRA should lower their price, subsidize
the EFDs, their payments could be ventured in small installments, or execute a
certain rate that will be charged at the time of filing the returns that will cease after
finishing to pay for the device. This will work as a motivation of using those devices
as traders will not feel the burden on acquiring the devices.