A Dissertation Submitted in Partial Fulfillment of the Requirements for the
Award of the Degree of Master of Business Administration and Corporate
Management (MBA-CM) of Mzumbe University
The study was carried out to assess the adoption of EFDs in increasing revenue
collection in Kinondoni Municipality, Tanzania. Specifically to examine the attitude
of traders towards the use of EFDs, effect of EFDs on increase of revenue collection
and the challenges facing traders on using EFDs. The study used purposive and
simple random sampling techniques to select sample size of 45 respondents for the
study. Also, the study used questionnaire and interview methods for data collection,
as well as thematic and descriptive statistics as techniques for data analysis.
The study concluded that traders in Kinondoni municipality have negative attitude
toward the use of EFDs, because of EFDs are sold at high cost for some traders to
afford (the devices are sold at 600,000- 1,400, 000 Tanzania shillings, they lack
knowledge to use EFDs, also traders believe that their business income would fall
after installing the EFDs because they pay more tax than what they have been paying.
However, the traders claimed that EFDs machines have been helping them to keep
properly their sale records reduced corruption in revenue collection. The adoption of
EFDs had also increased revenue collection in Kinondoni Municipality, the EFDs
machine had reduced loss of tax that was leaking through corruption, tax evasion and
submission of fake tax claim by dishonest traders, also record of sale transaction and
provision accurate information to businesses has increased transparency between
Tanzania Revenue Authority and traders for trader to pay the right tax, thus avoided
tax over assessment. Lastly, The lack of knowledge on the use of EFDs, lack of trust
on the function of EFDs, cost incurred for maintenance of EFDs, network problem
and power outage were the challenges that have been facing traders on the use of
EFDs in Kinondoni municipality.
The study recommended that Tanzania Revenue Authority (TRA) to emphasize on
training to tax payers for the effective use of the EFDs. In addition, Tanzania
Revenue Authority should re-evaluate the existing EFD device to ensure they have
enough capacity on power serving especially in remote areas; the minimum
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recommended time should at least be for seven HRS .The expected results will