A Dissertation Submitted in Partial Fulfillment of the Requirements for award of the Degree of Masters of Business Administration-Corporate Management of Mzumbe UniversityThe study on the challenges facing taxpayers in adopting the use of electronic fiscal devices (EFDs) in Tanzania was conducted in Dar es Salaam using Ilala tax region as a case study. The specific objectives of the study were to determine why taxpayers resist using EFDs, explore whether taxpayers have knowledge of EFDs and establish whether all eligible taxpayers were asked to buy the device. It also examine whether taxpayers appreciate paying taxes for the development of the country, identify factors inhibiting utilization of EFDs and to find out why some customers do not demand receipt for the purchased goods and/or services rendered.The study included a sample of 51 respondents out of them 02 were managers, 09 Head (In charge) of the Section/Unit, 20 were Tax Collectors and Tax consultants (Auditors), while the remaining 20 were willing taxpayers and stakeholders from different entities and sole proprietor who were purposively and randomly sampled accordingly. Information collected from the study revealed that majority of taxpayers have a business experience of at least 10years and nearly all of taxpayers resist using EFDs because of the challenges imposed by the devices which includes negative altitude of taxpayers towards EFDs, EFDs knowledge is not well known, low quality of EFDs and substandard receipts, time consuming using EFDs, are expensive, does not store power as purported to be, people are not comfortable with EFDs and power sage and power cut, are not relevant to our business environment, taxpayer’s fear that EFDs will disclose their sales turnover to TRA, connection to TRA Servers is not stable all the times and complaints on some fixed fees (e.g. Tshs. 60,000/=) charged by Suppliers of EFDs to their clients whenever there is breakdown. The study concludes that despite those challenges taxpayers are willing to accept using EFDs while their challenges are being addressed and hence appreciating paying tax for national development though are not satisfied with government expenditure. The study recommends that EFDs are designed to address the need of taxpayers, in term of being suitable for the business model and functionality to secure tax information for audit purposes therefore If TRA succeeds in solving all these problems, EFDs could help it avoid missing its revenue collection targets. According to estimates the devices could help the revenue body realize up to 50 per cent increase in collections if all the VAT (Value Added Tax) registered and non VAT businesses are connected to the devices.