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The study assessed the efficiency of EFDs in enhancing tax revenue collection and
business operations in Ilala Municipal, Dar es Salaam region. The study was guided
by three specific objectives: the extent to which the adoption of EFDs has raised the
tax revenue collection; the benefits of EFDs in improving business operations; and
the challenges still facing the adoption of EFDs.
The study employed a descriptive survey research design and applied both
quantitative and qualitative approaches. The data were collected using
questionnaires, interviews, observation and documentary analysis. The sample size
was 98 randomly selected respondents and two TRA officials. The primary data were
collected through questionnaires and interview while secondary data were collected
through documentary reviews. The obtained data were then analysed using SSPS
software to obtain frequency and percentage.
The research findings indicate that, the adoption of EFDs has increased tax revenue
collection in nominal terms. However, the growth rate of tax collection is not
promising. This is partially because most the traders do not issue EFD receipts
promptly thus, the reported sales are not representative of the actual sales at the
selling centres. Nonetheless, EFDs have been found to be reliable in terms of tax
calculation as the tax is based on the reported sales by the trader and the tax services
are accessible. Indeed, the most mentioned benefit of EFDs is the record-keeping of up
to five years. However, the adoption of EFDs has been faced by challenges to both
taxpayer and the tax authority. For example, traders complained of the cost
associated with the purchase of the EFD machines as the biggest challenge, followed
by a lack of trust with EFDs. The study recommends that the tax authority should
collaborate with the business community to try to find the means to enhance tax
compliance and eliminating challenges posed in the adoption of EFDs in tax systems
in Tanzania. |
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