A Dissertation Submitted to School of Business in Partial Fulfilment for the Requirements of the Award of Master of Business Administration (Corporate Management) Degree of Mzumbe UniversityThe aim of this study was to examine the challenges faced by taxpayers in using Electronic Fiscal Devices in Tanzania, a case study of selected taxpayers in Nyamagana District, Mwanza City. Researcher planned to look at the challenge facing taxpayer following the introduction and use of electronic taxation collection system in Tanzania especially in Mwanza City. The research adopted both quantitative and qualitative approaches and used descriptive and explanatory research designs. A sample size of 205 respondents, selected through stratified random sampling and purposive sampling, was used to provide data through questionnaires and in-depth interview. In addition, some data were collected through documentary review. The quantitative and qualitative data were analysed using descriptive statistics and thematic analysis respectively. Findings indicated inherent challenges; lack of education, high cost of the device, lack of sufficient technical experts, persistent power outage, and time loss on device operation. The device is to some extent effective according to TRA observation but still raise some reservations to tax payers. Although, there are reservations from tax payers, TRA acknowledge that the devices are useful in different ways. Thus, the research recommends various ways to address the challenges and the reservations to improve the effectiveness and usefulness of the devices.